Opening Up of Local Economy to Foreign Ownership Part of New Cha-Cha drive

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One of the reasons put forth by the League of Municipalities of the Philippines (LMP) in proposing a constitutional change is the organization’s desire to allow foreign ownership of certain local industries to spur investments, a move welcome to the Department of Interior and Local Governments (DILG) says its spokesperson Jonathan Malaya.

In submitting the LMP resolution to DILG secretary Eduardo Ano, LMP president Chavit Singson says their 1,488 members want constitutional change to get an equal share of government revenues to reportedly “institutionalize the Mandanas ruling of the Supreme Court and the entry of foreign ownership of local industries.”

Currentph.com got a copy of the resolution. The resolution did not specify when does the LMP want the constitutional change and when LMP passed the resolution.

The Mandanas ruling says that internal revenue allotments for local governments include all national taxes, and not only those collected by the Bureau of Internal Revenues (BIR). “Every municipality especially the poor ones are short of funds and they will definitely welcome all additional budget especially since this will help their development. This will ensure that regions will have continuous fair share in the taxes collected by the national government.” Singson said.

Fresh infusion of foreign investments in the provinces is necessary for the economic upliftment of poor provinces in the country, Singson adds. Majority ownership of local firms by foreigners is okey for as long as it does not impinge worker’s rights and bars foreigners from owning lands.

 

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