Two lawmakers from the House of Representatives have proposed a bill granting San Miguel Corp. tax exemptions for the construction and operation of the Bulacan Airport.
House BIll No. 7241 filed by Bulacan Rep. Jose Antonio R. Sy-Alvarado and DUMPER PTDA Partly List Rep. Claudine Diana D. Bautitsa last August 3, noted the “need to expedite the construction of a new airport.”
“ will serve the current and immediate future needs of Metro Manila, it is in the public interest that a franchise be granted to a qualified entity,” the two House lawmakers said in their explanatory note.
Notably, Section 15 of the bill, stated the need for the government to provide tax exemptions for P735-billion New Manila International Airport (NMIA) project of San Miguel.
“During the ten-year construction period, the grantee shall be exempt from all direct and indirect taxes. During the 50-year concession period, the grantee shall be exempt from income tax and real property tax,” Sy-Alvarado and Bautista proposed.
But the lawmakers also noted that “such exemption from the income tax and real property tax shall expire as soon as it is determined by competent authority that the grantee has fully recovered its costs and expenses including financing and borrowing expenses (the “Investment Cost”).”