Businessmirror december 17, 2016

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RELEASE OF TOURISM ACT I.R.R. ENDS UNCERTAINTY IN GRANT OF TIEZA PERKS

Here come the tourism investments

El Nido, Palawan

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Goncharov2006 | Dreamstime.com

By David Cagahastian

he Department of Tourism (DOT) expects hundreds of billions in investments in the tourism industry in the next five years, after the long-awaited implementing rules and regulations (IRR) of Republic Act 9353, or the Tourism Act of 2009, was finally issued.

Recently, Finance Secretary Carlos G. Dominguez III issued Revenue Regulation 7-2016 to provide the rules for the use of tax incentives for new and existing investors in the tourism industry. The regulation was issued by Dominguez upon the recommendation of Revenue Commissioner Caesar R. Dulay.

End of uncertainty

Tourism Assistant Secretary Frederick M. Alegre said the new revenue regulation was long awaited by prospective investors in the tourism industry, who have withheld their

investments since the passage of the Tourism Act in 2009 because there was uncertainty on whether they could enjoy the tax incentives granted by the law. “We’re expecting billions of pesos in new investments in the tourism industry in the next five years,” Alegre told the BusinessMirror. The DOT does not have an exact estimate of how much investments are expected to flow into the existing and upcoming tourism economic zones (TEZs) in the next five years; but based on recent estimates, the Philippines has missed around P58 billion in investments

in tourism annually for the past four years. According to the Tourism Infrastructure and Enterprise Zone Authority (Tieza), the tourism industry lost some P232.33 billion in investments from 2013 to 2016 because of the delay in the crafting of the IRR for the Tourism Act of 2009, which came out only in late2016 during the Duterte administration after being left on the back burner for almost seven years. The delay was due to the previous administration’s policy of frowning upon new tax incentives Continued on A2

₧232B Estimated worth of investments lost from 2013 to 2016 because of the delay in the crafting of the IRR for the Tourism Act of 2009

Military ready to deal final blow to Mindanao-based terrorists

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By Rene Acosta

he military is intensely pursuing the Maute Group, also known as the Dawla Islamiya, in the aftermath of its recent attack and nearly weeklong occupation of Butig in Lanao del Sur, where it even hoisted the black emblem of the Islamic State of Iraq and Syria (Isis), which is currently being pummeled by Iraqi and Syrian forces in the Middle East. The pursuit operation is being carried out simultaneously with the ongoing offensive against the other terrorist Abu Sayyaf Group

(ASG) in the provinces of Sulu and Basilan, which have seen the spike of kidnapping cases during the past several weeks. The twin operations were being undertaken as the Armed Forces has learned its lesson from the ASG, the original homegrown terrorist group that has evolved into Mindanao’s foremost security threat from being a ragtag jihadist group in the 1990s. Such metamorphosis happened right under the government’s nose. While it may be a tall order to defeat the Maute Group in the short term, especially now that it

PESO exchange rates n US 49.9220

is already aligned with the Isis and even backed by the regional terror group Jemaah Islamiyah, it is still possible to break the group since it is still on its infancy.

Grappling with terrorism

No less than President Duterte has warned about the danger posed by the Maute Group with matching words of urgency for the military to lick it, along with the ASG problem, with his statements that the country would have to grapple with terrorism within the next two to three years. See “Military,” A2

New Armed Forces chief Lt.Gen. Eduardo M. Año (right) and outgoing chief Gen. Ricardo R. Visaya salute during the change-ofcommand ceremony at Camp Aguinaldo in Quezon City on December 7. AP/Bullit Marquez

n japan 0.4226 n UK 62.0481 n HK 6.4333 n CHINA 7.1853 n singapore 34.5888 n australia 36.7126 n EU 51.9988 n SAUDI arabia 13.3139

Source: BSP (16 December 2016 )


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