Senate OK of Special Defense Economic Zone in Bataan to strengthen SRDP Act, says Zubiri
January 28, 2025
Senate OK of Special Defense Economic Zone in Bataan to strengthen SRDP Act, says Zubiri
28 January 2025
The Senate has approved on third and final reading Senate Bill No. 2900, which seeks to establish a Special Defense Economic Zone (SpeDEZ) in Limay, Bataan - an initiative that Sen. Juan Miguel "Migz" Zubiri says will bolster the country's self-reliant defense posture.
"This approval will go a long way towards developing a fully self-reliant defense posture, where our armed forces are supplied by our own homegrown defense industry," Zubiri, the bill's author and sponsor, said.
The proposed defense ecozone will be located within the estate of the Government Arsenal in Limay, Bataan.
He explained that the SpeDEZ will serve as a one-stop economic hub for defense industry investors looking to set up operations in the country, particularly following the enactment of the Self-Reliant Defense Posture Revitalization Act (SRDP Act) last year.
Zubiri, who chairs the Senate Committee on Economic Affairs, highlighted the economic benefits of the measure, noting that it will not only strengthen the local defense industry but also stimulate job creation and domestic production of raw materials.
"In the interest of self-reliance and in line with our Filipino-first policies, we made sure to require that SpeDEZ locators acquire a percentage of their raw materials from local producers," the former Senate President said.
"This will increase our job creation twofold, as we open up new jobs within the SpeDEZ, and also create more jobs in various industries producing raw materials."
Instead of granting traditional tax incentives, the measure imposes a 5-percent tax on the gross income of all establishments operating within the SpeDEZ.
The revenue generated will be allocated to the Armed Forces of the Philippines (AFP) Pension Fund, the Province of Bataan, the host city or municipality, and the SpeDEZ Authority.
Zubiri expressed confidence that the establishment of the special economic zone will provide a significant boost to the country's defense capabilities while fostering economic growth and industrial development.
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