2009 R - 72 - CALLING ON THE SBMA TO REFUSE THE GRANT OF “VAT-EXEMPTION” PRIVILEGES TO THE DEVELOPER AND/OR OPERATOR OF THE “PROPOSED MALL”

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON MAY 27, 2009 AT THE CITY HALL.

PRESENT:

Hon. Gina Gulanes-Perez - - City Councilor &Temporary Presiding Officer
Hon. John Carlos G. Delos Reyes- City Councilor
Hon. Rodel S. Cerezo - “ “
Hon. Edwin J. Piano - - “ “
Hon. Angelito W. Baloy - “ “
Hon. Anselmo A. Aquino- - “ “
Hon. Elena C. Dabu- - - “ “
Hon. Jonathan G. Manalo- - - “ “
Hon. Cheenee F. Hoya- - - SK Federation President

ABSENT:

Hon. Cynthia G. Cajudo - - - City Vice-Mayor & Presiding Officer
(On Official Business)
Hon. Sarah Lugerna Lipumano-Garcia-- City Councilor
(On Leave)
Hon. Aquilino Y. Cortez, Jr.- - City Councilor
(On Official Travel Abroad)
Hon. Carlito A. Baloy - - - President, Liga ng mga Barangay
(On Official Business)


RESOLUTION NO. 72
(Series of 2009)

A RESOLUTION CALLING ON THE SUBIC BAY METROPOLITAN AUTHORITY (SBMA) TO REFUSE THE GRANT OF “VAT-EXEMPTION” PRIVILEGES TO THE DEVELOPER AND/OR OPERATOR OF THE “PROPOSED MALL” INSIDE THE FREEPORT GIVEN ITS ADVERSE EFFECTS ON OLONGAPO CITY BUSINESS AND INDUSTRY

WHEREAS, the City of Olongapo was apprised that a major property developer and/or operator (DEVELOPER / OPERATOR) is interested in utilizing parcels of land inside the Subic Bay Freeport Zone (SBFZ), such as those situated near the SBFZ Main Gate, for the development of commercial and residential areas, including the establishment and operation of shopping malls;

WHEREAS, the location which the developer/operator seeks to utilize for commercial and residential purposes, including the establishment and/or operation of shopping malls, is proximate to, or a mere walking distance from, the areas frequented by a majority of the City’s populace;

WHEREAS, the developer/operator seeks to avail of all possible tax and fiscal privileges and incentives applied for by SBFZ locators including exemption from the payment of the Value Added Tax (VAT);

WHEREAS, if the Subic Bay Metropolitan Authority (SBMA) grants VAT-exemption to the developer/operator, the latter would have lower operating costs and could offer its goods at lower prices, thus deriving unwarranted market advantage over local businessmen;

WHEREAS, with the grant of VAT-exemption, the developer/operator could virtually paralyze all competing business in Olongapo City as the latter’s shopping populace would shift their purchasing power to the planned mall located inside the SBFZ as the goods would be cheaper;

WHEREAS, this would cause severe price distortion, and an adverse economic situation for the merchants and store owners of Olongapo City who, while still struggling with the effects of the current global financial crisis, would now have to contend with a major developer/operator in an uneven playing field;

WHEREAS, while the City of Olongapo does not object to healthy and fair business competition, it is duty bound to protect its people from an unfair and inequitable playing field, especially with the current global economic crisis affecting the entire country;

NOW, THEREFORE, with the unanimous accord of the Member of the Sangguniang Panlungsod present,

RESOLVED, AS IT IS HEREBY RESOLVED, by the Sangguniang Panlungsod in session assembled, to strongly object to and oppose the grant by SBMA of VAT-exemption to any developer/operator desiring to locate, develop and/or operate commercial and residential facilities, and a shopping mall in SBFZ areas situated proximate to, or right beside the Main Gate and the Central Business District;

APPROVED UNANIMOUSLY, May 27, 2009.


CYNTHIA G. CAJUDO
City Vice-Mayor & Presiding Officer
(On Official Business)


GINA GULANES-PEREZ JOHN CARLOS G. DELOS REYES
City Councilor & City Councilor
Temporary Presiding Officer

RODEL S. CEREZO SARAH LUGERNA LIPUMANO-GARCIA
City Councilor City Councilor
(On Leave)

EDWIN J. PIANO ANGELITO W. BALOY
City Councilor City Councilor

AQUILINO Y. CORTEZ, JR ANSELMO A. AQUINO
City Councilor City Councilor
(On Official Travel Abroad)

ELENA C. DABU JONATHAN G. MANALO
City Councilor City Councilor

CARLITO A. BALOY CHEENEE F. HOYA
President, Liga ng mga Barangay SK Federation President
(On Official Business)


ATTEST:

ELFLIDA S. SALMON
Council Secretary


APPROVED BY HIS HONOR, THE CITY MAYOR ON______________________.



JAMES GORDON, JR.
City Mayor
ATTEST:

DELFIN A. JUICO, JR.
Secretary to the City Mayor