Lacson flags potential conflict between CREATE and San Miguel airport franchise bills

Senator Panfilo Lacson has raised a possible conflict between two important measures pending in the Senate—the Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill and the San Miguel Aerocity Inc. franchise for Bulacan airport.

Lacson raised the issue of the catch-all phrase in CREATE's provisions which may impair the airport franchise bill and stir up a Constitutional issue later on.

"Since the repealing clause and the amendatory clause enumerate several laws—that we have already passed—that are covered, and after that both articles still proceed to include a catch-all phrase, I'd like to believe that it's intended to mean that it shall cover even special laws," Lacson said referring to CREATE during the session last Monday.

"My concern is what happens if the San Miguel aero(city) franchise is enacted ahead of the CREATE measure? Will the provision of CREATE be applied to the measure under consideration, the franchise bill?" he added.

"'Pag ang franchise bill is enacted or passed into law ahead of the CREATE bill, we might be facing a constitutional issue. Assuming that it (CREATE) will repeal the franchise bill in consideration, then magba-violate tayo ng Constitution, particularly Article III Section 10, 'yung non-impairment of application," Lacson further explained.

Among the primary features of the CREATE bill was the rationalization of tax incentives by making them time-bound and performance-based.

The airport franchise bill, on the other hand, carves out certain tax exemptions for the grantee for a 50-year period.

In earlier interpellations, franchise bill sponsor Senator Grace Poe said that the tax incentives under the airport franchise to be given to San Miguel Aerocity would not be affected by CREATE.

Stressing that he is not against the franchise bill and is only being cautious about possible onstitutional issues that the lawmakers could face in the future, Lacson offered solutions.

"Puwede naman maiwasan 'yun by making the franchise bill an exception to the CREATE bill by passing the CREATE bill ahead, if that is possible," he said.

"If not, we might as well amend and delete the catch-all provisions under the CREATE bill para hindi maapektuhan 'yung franchise bill," he said.

Senate Majority Leader Juan Miguel Zubiri said he supports the move to amend the corporate income tax reform bill at the proper time.

Senate Ways and Means Committee chairperson Pia Cayetano, who during that day insisted that CREATE be prioritized in session, said the concern of Lacson was one of the reasons why she wanted to be given more time to study the franchise bill further.

The Senate leaders, however, said it is imperative that the airport franchise bill be passed on second reading last Monday. Otherwise, it will be left hanging as Congress is set to enter its break next week.

"There is a three-day rule because unlike CREATE, it is not certified as urgent. Therefore there won’t be time for a bicam and ratification before the [October] 14th break. SMC (San Miguel Corporation) is already spending billions for the country and further delay is regressive to their investment," Sotto said in a message to reporters.

The airport franchise bill is up for third and final reading on Monday. CREATE bill, meanwhile, is in the period of interpellations.—AOL, GMA News