Philippine Business Groups - Joint Foreign

Chambers Press Conference on 16th

Congress LegislationSeptember 11, 2013, 10:00 a.m.,

JV Del Rosario Rm, 4/F AIM Conference Center

Philippine Business Groups-Joint Foreign Chambers

Arangkada Philippines 2010

A comprehensive advocacy paper intended to share

recommendations leading to the creation of

$75 billion in new foreign investment,

10 million jobs, and

Over one trillion pesos in revenue

for the Philippine economy within this decade.

• The Joint Foreign Chambers of the Philippines advocates that

to achieve these results the country should focus on more

rapid development of the Seven Big Winner Sectors and move

twice as fast!!

The Arangkada Philippines Project TAPP is a 4-year USAID project with AmCham to

advance the 470 Arangkada recommendations.

http://www.investphilippines.info/arangkada/

http://www.investphilippines.info/arangkada/the-arangkada-philippines-second-anniversary-assessment/

Legislation Policy Brief

Key Point

Act/Bill Year Introduced

Date enacted/ parliamentary status

Years to enactmen

t/ pending

1. Anti-Enforced or Involuntary Disappearance Act (RA 10353) 1990 21-Dec-12 22 (pass)

2. Anti-Trust 1992 H-pending 2R; S-pending 2R

21 (pending)

3. Build-Operate-Transfer Law amendments 1996 H-TWG; S-pending in cmt. 17 (pending)

4. BSP Charter amendments 1997 H-pending 2R; S-pending in cmt.

16 (pending)

5. CCT/GPB Tax Abolition (RA 10378) 2011 7-Mar-13 2 (pass) 6. Civil Aviation Authority of the Philippines Act (RA 9497) 1993 4-Mar-08 15 (pass)

7. Customs Modernization and Tariffs Act 2008 H-approved 3R; S-pending in cmt.

5 (pending)

8. Cybercrime Prevention Act (RA 10175) 2004 12-Sep-12 8 (pass)

9. Data Privacy Act (RA 10174) 2009 15-Aug-12 3 (pass)

Pace of legislation, 26 bills in recent Congresses

• The pace of legislation is hard to predict. Some bills move through the Congress in surprisingly short periods. Others are stuck for many years.

Act/Bill Year

Introduced

Date enacted/ parliamentary status

Years to enactment/

pending 10. Department of Information and Communications Technology

2001 H-approved 3R; S-approved 3R 12 (pending)

11. Exchange of Information on Tax Matters Act (RA 10021) 2009 5-Mar-12 1 (pass)

12. Excise Tax on Alcohol, Cigarettes, and Tobacco (RA 10351)

2007 20-Dec-12 5 (pass)

13. Freedom of Information Act 1992 H-pending 2R; S-approved 3R 21 (pending)

14. GOCC Governance Act (RA 10149) 1998 6-Jun-11 13 (pass) 15. Government Procurement Act amendments 2004 H-TWG; S-pending in cmt. 9 (pending) 16. Insurance Code amendments 1987 15-Aug-13 26 (pass) 17. Intellectual Property Code amendments (RA 10372) 2001 28-Feb-13 12 (pass)

18. Land Administration and Reform Act 2003 H-pending in cmt.; S-pending in cmt. 10 (pending)

19. Repeal of Nightwork Prohibition for Women (RA 10151) 2002 21-Jun-11 9 (pass)

20. National Land Use Policy 1993 H-3R approved; S-pending 2R 20 (pending)

21. Philippine Design Competitiveness Act (RA 10557) 2008 15-May-13 5 (pass)

22. Rationalization of Fiscal Incentives 1995 H-approved 3R; S-pending in cmt. 18 (pending)

23. Reproductive Health (RA 10354) 1995 21-Dec-12 17 (pass) 24. Rural Bank Act amendments (RA 10574) 1997 24-May-13 16 (pass) 25. Sustainable Forest Management Act 1995 H-approved 3R; S-TWG 18 (pending) 26. Water Sector Reform 1997 H-TWG; S-pending in cmt. 16 (pending)

Key Point

Law Law No. Date

Enacted 14th Congress (2007-10)

1. Anti-Camcording Act RA 10088 13-May-10

2.Bureau of Food and Drugs Act amendments

RA 9711 18-Aug-09

3. Civil Aviation Authority of the Phil. Act RA 9497 4-Mar-08 4. Cooperatives Code RA 9520 17-Feb-09 5. Credit Information System Act RA 9510 31-Oct-08 6. Customs Brokers Act amendments RA 9853 15-Dec-09 7. Documentary Stamp Tax Exemption RA 9648 30-Jun-09

8.Financial Rehabilitation and Insolvency Act

RA 10124 18-Jul-10

9.Individual Income Taxes Rate Exemption

RA 9504 17-Jun-08

10. JPEPA Ratification   8-Oct-08

11.Magna Carta for MSMEs Act amendments

RA 9501 23-May-08

Business and economic reform laws, by Congress, 2007-13

• The last two Congresses have been productive, producing a high number of business and economic reform measures – 22 in the 14th Congress (2007-10) and 29 in the 15th Congress (2010-13).

Law Law No. Date

Enacted 14th Congress (2007-10)

12. National Grid Corporation Franchise RA 9511 1-Dec-0813. National Tourism Policy Act RA 9593 12-May-09

14.Personal Equity Retirement Account (PERA) Act

RA 9505 22-Aug-08

15.Philippine Deposit Insurance Corp. amendments

RA 9576 29-Apr-09

16. Pre-need Code RA 9829 3-Dec-0917. Real Estate Investment Trust Act RA 9856 17-Dec-0918. Renewable Energy Act RA 9513 16-Dec-08

19. Residential Free Patent Act RA

10023 9-Mar-10

20. Revised Kyoto Convention Ratification   1-Feb-10

21. Tax Information Exchange Act RA

10021 8-Mar-10

22. Tax on Life Insurance Premiums RA

10001 23-Feb-10

1.Agricultural and Fisheries Mechanization Law

RA 10601

5-Jun-13

2.Anti-Enforced or Involuntary Disappearance Act

RA 10353

21-Dec-12

3. Anti-Money Laundering Act amendments RA 10167

18-Jun-12

4. Anti-Money Laundering Act amendments RA 10365

15-Feb-13

5.Common Carriers Tax/ Gross Philippine Billings Tax

RA 10378

7-Mar-13

6.Conciliation-Mediation for Dispute Settlement

RA 10396

16-Mar-13

7. Cybercrime Prevention Act RA 10175

9-Sep-12

8. Data Privacy Act RA 10173

15-Aug-12

9. Domestic Workers Act RA 10361

18-Jan-13

10. Early Years Act RA 10410

26-Mar-13

11. Enhanced Basic Education Act RA 10533

15-May-13

12.Excise Tax on Alcohol, Cigarettes, and Tobacco

RA 10351

20-Dec-12

13. Expanded Anti-trafficking in Persons Act RA 10364

6-Feb-13

14.Extending Implementation of the Lifeline Rate

RA 10150

20-Jun-11

15.Financial Rehabilitation and Insolvency Act

RA 10142

18-Jul-10

Law Law No.

Date Enacted

15th Congress (2010-13)

16. Firearms and Ammunition Regulation Act RA 10591

29-May-13

17. GOCC Governance Act RA 10149

6-Jun-11

18. Intellectual Property Code amendments RA 10372

28-Feb-13

19. Kindergarten Education Act RA 10157

20-Jan-12

20. National Health Insurance Act of 2013 RA 10606

19-Jun-13

21. People Survival Fund RA 10174

16-Aug-12

22. Philippine Design Competitiveness Act RA 10557

15-May-13

23. Regulating Profession – Environmental Planning RA 10587

27-May-13

24. Repeal of Nightwork Prohibition for Women RA 10151

21-Jun-11

25. Reproductive Health Act RA 10354

21-Dec-12

26. Revised AFP Modernization Act amendments RA 10349

11-Dec-12

27. Rural Bank Act amendments RA 10574

24-May-13

28. Strengthening Tripartism RA 10395

14-Mar-13

29.Terrorism Financing Prevention and Suppression Act

RA 10168

18-Jun-12

Law Law No. Date Enacted

15th Congress (2010-13)

Key Point

Bill Final Status 1. Additional Relief to Families with Dependents H-approved 3R; S-approved 3R 2. Chinese New Year as a Working Holiday H-approved 3R; S-approved 3R

3. Customs Modernization and Tariffs Act H-approved 3R; S-pending in cmt.

4. Department of Info and Communications Tech.

H-approved 3R; S-approved 3R

5. Direct Remittance to LGUs of 40% Taxes H-approved 3R; S-pending in cmt.

6. Freedom of Access to Information H-pending 2R; S-approved 3R

7. Lemon Law H-approved 3R; S-pending in cmt.

8. National Land Use Act H-approved 3R; S-pending 2R

9. Plastic Bag Regulation Act H-approved 3R; S-pending in cmt.

10. Rationalization of Fiscal Incentives H-approved 3R; S-pending in cmt.

11. Real Property Valuation H-approved 3R; S-pending in cmt.

12. Regulating Profession - Criminology H-approved 3R; S-pending in cmt.

13. Regulating Profession - Forestry H-approved 3R; S-pending in cmt.

14. Regulating Profession - Pharmacy H-approved 3R; S-pending 2R 15. Sustainable Forest Management Act H-approved 3R; S-TWG 16. Whistle Blowers Protection Act H-approved 3R; S-pending 2R 17. Witness Protection, Security, and Benefit Act H-approved 3R; S-pending 2R

• Low Hanging Fruit or bills that almost reached enactment in the 15th Congress.

Key PointRecord of Congress in enacting revenue-reducing

and market unfriendly laws has improved.

Law Law No. Date

Enacted 14th Congress (2007-10)

1. Agri-agra Law amendments RA

10000 23-Feb-10

2. Aurora Pacific Economic Zone Act RA

10083 22-Apr-10

3. Bataan Freeport Area Act RA 9728 23-Oct-094. Cheaper Medicines Act RA 9502 6-Jun-085. Eidul Adha Holiday RA 9849 11-Dec-096. Expanded Senior Citizens Act RA 9994 15-Feb-997. Income Tax Exemption and Condonation of Unpaid Taxes of Local Water Districts

RA 10026

11-Mar-10

8. Tax Deductibility of Actual Free Legal Services rendered by lawyers

RA 9999 23-Feb-10

15th Congress (2010-13) None    

Key Points

• Greater attention should be given to the timely approval and carrying out of IRR.

• A presidential EO can hasten introduction of a reform.

• LEDAC should meet regularly to facilitate coordination between Executive and Congressional leaders. LEDAC met only twice in 2011 in current administration.

Conclusions and Recommendations Passage of business and economic reforms bills

should have high priority as they support investment and job creation.

The President’s Liberal Party and allies enjoy strong 3/4 majorities that can be very productive in accomplishing legislative reform, more than the 15th Congress.

Leveraging its high popular support, the Aquino Administration should work closely with Congress to pass significant reforms.

Conclusions and Recommendations LEDAC should meet regularly to facilitate coordination

and maximize the legislative legacy of the Administration. Alternately, the House Speaker and Senate President should conduct “summits.”

Passage of “Low-Hanging Fruit” bills should be prioritized.

Market-inimical and revenue-eroding bills should be carefully reviewed.

Bills enacted should be implemented as soon as possible.

The legislative workload should be front-loaded to pass bills earlier rather than toward the end of the Congress, when the 2016 national elections will preoccupy legislators.

Priority Bills of the Business Sector in the 16th CongressKey reforms that Congress should act upon at an

early date include:

1.

Competition policy/anti-trust (independent commission)

2.

Customs Modernization and Tariffs Act/Anti-Smuggling

3.

Economic Provisions of the Constitution amendments

4.

Foreign Investment Negative List liberalization

5.

Government Procurement Act amendments

6.

Mining Fiscal Reform (competitive and equitable)

7.

Rationalization of Fiscal Incentives

8.

Transparency and Accountability in Fiscal Incentives.

Priority Bills of the Business Sector in the 16th CongressOther important reforms include:

1. Anti-Money Laundering Act amendments 2. Bangsamoro Basic Law 3. BSP Charter amendments 4. CAAP Act amendments 5. CCT/GPB Tax on freight (removal) 6. DICT creation 7. Energy Efficiency and Conservation Act 8. Freedom of Access to Information 9. Labor Code reform10.

Land Administration Reform Act

11.

Fiscal Responsibility Act

12.

National Land Use Act*

Priority Bills of the Business Sector in the 16th Congress

Other important reforms include:

13.

National Valuation Law

14.

Ombudsman Act amendments

15.

PPA Charter amendments

16.

Professional Laws (reciprocity)

17.

Public Services Act rationalization

18.

Right-of-Way Act amendments

19.

Sandiganbayan reforms

20.

Sustainable Forest Management Act

21.

Whistle Blowers Protection Act

22.

Witness Protection, Security, and Benefit Act.

Thank You!