BIR told to release Mabalacat's 2% share in Clark

Sun.Star Pampanga - Mabalacat Mayor Marino Morales has asked the Bureau of Internal Revenue (BIR) to release the two percent share of the town in the Gross Income Earned (GIE) remitted by locators in the Clark Freeport. Morales said the amount, which runs into millions of pesos, would be able to fund the socio-economic and development projects of the local government. The amount, he added, will also be infused to the establishment of schools and infrastructure projects. At least four more towns - Porac and Angeles City in Pampanga and Bamban and Capaz in Tarlac - are collecting their two percent shares in the Freeport. The five percent GIE were reportedly remitted to the BIR, but the five towns did not receive anything, according to Morales. "The law is very clear. Under Republic Act (RA) 9400, the Clark Freeport should have remitted the shares of the five towns since April 19, 2007 when the amended provision of RA 7227, otherwise known as the Bases Conversion and Development Act of 1992 was approved," said the mayor. RA 9400 states that a five percent tax on gross income earned shall be paid by all registered business enterprises within the Freeport and shall be directly remitted as follows -- three percent to the National Government and two percent to the treasurer's office of the municipality or city where they are located. Section 13 of the law also has it that "it shall take effect 15 days after its publication in the Official Gazette or in any two newspapers of general circulation, whichever comes earlier." The law was published on April 4, 2007 and its effectivity started April 19, 2007 or 15 days after its publication. Guy Hilbero, chairman of Task Force Clark Freeport and Clark Special Economic Zone, said the reckoning date in the payment of shares is April 19, 2007. Hilbero asked the BIR to furnish a copy of all the investors in the Freeport who remitted the five percent GIE in order for them to determine exactly how much they will collect. RA 9400 states that five percent GIE shall be paid and two percent of which will go to the five towns that encompasses the Freeport. The BIR however insisted that the reckoning date is March 6, 2008, which is the effectivity date of the Implementing Rules and Regulations (IRR) of 9400. Hilbero claimed that the IRR are set of rules, standards and or procedures that serve as guidelines to facilitate the effective and efficient implementation of a law. The rules and regulations should not contradict a law, according to him. "The reckoning date of RA 9400 is not a question of law to be raised as an issue to the Supreme Court. The law is clear and explicit, it is the IRR that stands to be corrected in a manner consistent to the law in which they were corrected," he added.