Mayor Jerry Treñas said the committee chaired by Councilor Jose Espinosa III has trimmed down the capitalization of prospective investors who will avail of the incentives. The tax break will be done in gradual basis within a five-year period.
The existing code only gives a three-year tax break for investors. In its proposed tax break, the committee wants it to lengthen to four or five years. The proposed incentive is designed to attract would be investors in the city in spite of the financial crisis.
The committee will present the new scheme of the Incentives Code as soon as it has ironed out all the details which is both beneficial to the city and the investors, said Treñas.
Treñas is optimistic that the proposed changes in the Incentive Code will be approved by members of the legislative body. There are three councilors who are with the committee, namely, Councilor Eduardo Peñaredondo and Ely Estante aside from Espinosa. It needs an ordinance as assurance for the entering investors.
The entry of new investors with big capitalization has a multiplier effect not only on the city government but as well as to the people. It will generate employment as soon as the construction phase of the business site starts, said Treñas.
As soon as the construction phase is done, the firm will employ people to work with them. It will spark economic activity. The taxes as payment for the city government come as the third beneficiary for the entry of new investors, he said.(http://www.thenewstoday.info)
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