Pampanga exec wants 2% share of Clark Zone's income

MABALACAT, Pampanga - Mayor Marino “Boking" Morales is intensifying his efforts in the collection of this municipality’s two percent share from the gross income earned (GIE) remitted by locators inside the Clark Freeport Zone to the Bureau of Internal Revenue (BIR) beginning April 19, 2007. R.A. 9400, which mandates the two percent share to the local government, was approved last March 30, 2007 amending certain provisions of R.A. 7227, or otherwise known as the Bases Conversion and Development Act of 1992. The law provides that “a five percent tax on gross income earned shall be paid by all registered business enterprises within the CFZ and shall be directly remitted as follows: three percent (3%) to the National Government, and two percent (2%) to the treasurer's office of the municipality or city where they are located". Section 13 of the said Act also stipulates 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. About 93 percent of the total land area of the main zone of Clark is within the territorial jurisdiction of this municipality. Mayor Morales pointed out that “the law is explicit as to the effectivity of R.A. 9400." He said section 13 clearly states that it shall take effect 15 days after its publication in the Official Gazette or any two newspapers of general circulation. “There is no legal ambiguity there," said Morales. The mayor explained that, “the BIR erred in its interpretation of the law by citing Section 10 as its legal basis. A promulgation of necessary implementing rules and regulations (IRR) merely serves as a guideline for the proper implementation of the law, but certainly does not dictate any terms as to the law’s effectivity, as such the BIR committed a grave misconstruction of the law." Morales stressed that he “will continuously maintain to stand firm on my claim for the BIR to remit what is due to the municipality of Mabalacat, as prescribed by law." “The date of effectivity of R.A. 9400 is clear. “Res ipsa loquitur, (the thing speaks for itself)," said Morales. - GMANews.TV