by: SB Nestor E. Changcoco
Be it enacted by the Sangguniang Bayan of Arayat, Pampanga in Session, Assembled, that:
ARTICLE I – TITLE AND DECLARATION OF POLICY
Section 1. Title. This Ordinance shall be known as the Investment Incentive Code of the Municipality of Arayat.
Section 2. Declaration of Investment Principles and Policies. It is the policy of the Municipal Government of Arayat to encourage both local and foreign investments in its jurisdiction that will result in the mutual benefits of its citizens and investors, taking into account the principles of sustainable development, wise utilization of natural resources, equitable distribution of wealth and holistic human resource development.
– To accelerate the sound development of the municipal economy, in consonance with the principles and objectives of economic nationalism, and in pursuance of a planned economically feasible and practicable establishment of industries.
– To encourage Filipino and Foreign investments as hereinafter set out, in projects to develop agricultural, processing and manufacturing industries which increase municipal income, bring about economic upliftment, provide more opportunities for employment, raise the standard of living of the people of Arayat.
– To welcome and encourage foreign capital to establish pioneer enterprises that are capital and labor intensive and would utilize a substantial amount of domestic raw materials, in joint venture with substantial Filipino capital whenever available.
The municipal government acknowledges its lead role in promoting industrial peace and security in establishing infrastructure facilities and as agent in the transformation of the community into a responsive citizenry.
Finally, the municipality manifests its desire to attract investors through efficient and effective governance, insuring management continuity of policies, providing fiscal incentives, supportive and facilitative political climate, and providing adequate support promoting political stability.
Section 3. Definition of Terms when applied to this Ordinance
1. “Board” shall refer to the Municipal Investment Board created under the Code.
2. “Code” shall refer to the Investment Incentive Code of the Municipality of Arayat.
3. “Municipality” shall refer to the Municipality of Arayat covering all areas within its territorial jurisdiction as provided by law.
4. “Investment” shall refer to money, equipment, or properties, professional services or rights expressed in monetary value put-in for the purpose of engaging in a business activity.
5. “Small Scale Enterprise” shall refer to the enterprise having a total asset of P3.01 to 15 million pesos, excluding the value of land.
6. “Medium Scale Enterprise” shall refer to the business enterprise having a total asset of P15.01 to 100 million pesos, excluding the value of land.
7. “Large Scale Enterprise” shall refer to the business enterprise having a total asset of more than P100 million pesos, excluding the value of land.
8. “Registered Establishment/Enterprise” shall refer to any establishment and/or enterprise qualified and issued a Certificate of Registration/Exemption to avail of incentives under this Code.
9. “Existing Establishment/Enterprises” shall refer to those establishments and/or enterprises which are in operation and whose production areas are located within the territorial jurisdiction of the Municipality of Arayat prior to the approval of this Ordinance and have not previously availed of the herein incentives.
10. “Expansion of Establishments/Enterprises” shall refer to existing establishments and/or enterprises which shall increase their capitalization, production capacity/volume of operation, employment and/or putting up of a new physical structures and facilities.
11. “New Establishment/Enterprises” shall refer to those prospective establishments and/or enterprises which are not yet in operation prior to the approval of this Ordinance or those prospective establishments and/or enterprises who wish to establish a capital and labor-intensive business venture within the territorial jurisdiction of the Municipality of Arayat after the approval of this Ordinance.
12. “Incentives” shall refer to the benefits or privileges granted by the Municipality of Arayat to encourage investment.
13. “Fiscal Incentive” shall refer to the direct financial or monetary benefit to the investor.
14. “Non-Fiscal Incentives” shall refer to a non-monetary value of incentives that provide direct benefit to investors.
15. “Certificate of Registration/Exemption” shall refer to the certificate given to participating members who have availed of the investment incentive program of the municipality and who will enjoy tax holidays/exemptions as provided for in this Ordinance.
16. “Tax Holiday” shall refer to the tax exemptions granted to registered enterprise.
17. “Government Agencies” shall refer to the branch of national government in charge of promoting, regulating and supervising investments such as, Department of Trade and Industry (DTI), Securities and Exchange Commission (SEC), Social Security System (SSS), Bureau of Internal Revenue (BIR), National Economic and Development Authority (NEDA), and the Department of Environment and natural Resources (DENR).