Tuesday, April 30, 2024

Reg. 3 Econ. Dwarfs Reg. 1 with P60.8-B. Tax

 By Mortz C. Ortigoza, MPA

ANGELES CITY, Pampanga – Based on the tax target given by the national government, the taxes to be collected by the Bureau of Internal Revenue in central Luzon are almost three times bigger than by their counterpart in Ilocos Region.

BIR Revenue Region No. 4 Director lawyer Emmanuel S. Ferrer, Jr. told Northern Watch Newspaper that his office is mandated by the tax agency’s central office in Quezon City to collect P60.8 billion for this year.

Central Luzon is becoming a preferred hub for industrial park development in the country. This is according to leading diversified professional services and investment management firm Colliers (NASDAQ and TSX: CIGI), that attributes this to improving infrastructure connectivity and the rise of new industrial spaces in the region, brought on by the development of more integrated communities. Moneysense.com

“P60.8 billion. For last year P51 billion,” the Director told this writer during the sideline of the tax campaign kick-off rally of Revenue District Office No. 21A held at the Activity Center of Marquee Mall in Angeles City, Pampanga.

Ilocos Region

The BIR in central Luzon oversees Revenue District Office No. 1 in Ilocos Norte, RDO No. 2 in Ilocos Sur, RDO No. 3 in La Union, RDO No. 4 in central Pangasinan, RDO No. 5 in western Pangasinan, and RDO No. 6 in eastern Pangasinan.

RDO No. 4 Chief Lope N. Tubera said that Revenue Regional Office No. 1 was ordered to collect P23. 7 billion while his office – that oversees two cities and fourteen towns’ central Pangasinan was tasked to rack up P5.391 billion for 2024.

Central Luzon

If RDO No. 4 is the premier tax office in the six RDOs Ilocos Region, RDO-21A under Charmaine C. dela Torre is the flagship office of central Luzon because it is mandated to collect P14.4 -billion this year. RDO-21A covers the cities of Angeles and Mabalacat and the towns of Magalang, Porac, and Arayat.

The population of the six provinces (Aurora, Bataan, Nueva Ecija, Pampanga, Tarlac, and Zambales) of the Revenue Regional Office No. 4 as coined by the BIR for central Luzon was 7, 985, 037 (PSA 2020) while the demography of the four provinces (Ilocos Norte, Ilocos Sur, La Union, and Pangasinan) Revenue Regional Office No. 1 was 5,301,139 (PSA 2020).

 Region-3

A growth region in the Philippines, according to the Department of Trade & Industry (DTI) that contributes significantly to the national economy, Central Luzon is home to a number of industrial estates and economic zones with efficient water, power and telecommunication facilities; port facilities; road networks that create synergy between and among the economic and tourism points of Subic, Clark and the seven provinces; and, a strategic location that offers accessibility for the movement of people, goods and service from the North to Manila.

A distinct advantage in consideration of the Asia-Pacific Rim, Central Luzon’s highly strategic location was enough for the United States Government to locate their biggest naval and air military facilities outside the US mainland. The former Subic Naval Base and Clark Air Base facilities which were turned over to the Philippine government in 1991, now two of the country’s premier economic zones.

Central Luzon combines the advantages of an international airport, a seaport, industrial and agricultural areas, tourism and leisure sites, support services, and major thoroughfares. The complementation of each of these elements enhances the strengths of the region as an investment destination.

Ilocos Region

Although the economy in the southern portion of the region, especially Pangasinan, is anchored on agro-industrial and service industry, the economy in the northern portion of the region is anchored in the agricultural sector. The economy in Pangasinan is driven by agro-industrial businesses, such as milkfish (bangus) cultivation and processing, livestock raising, fish paste processing (bagoong), salt production, and others. At the same time the importance of trading, financial services, and educational services in the economy cannot be denied. Income in the Ilocos provinces or northern portion mostly come from cultivating rice, tobacco, corn, sugarcane, and fruits; raising livestock such as pigs, chicken, goats, and carabaos (water buffalos).

The distribution of the economic activity in the region may be seen from the collection of tax revenue of the national government. The bulk of the collections come from Pangasinan, which posted 61% of the total.

The service and light manufacturing industries are concentrated in the cities. Dagupan City is mostly driven by its local entrepreneurs, which have started to expand its network up to the national level. San Fernando City in La Union also has an active shipping port and Laoag City in Ilocos Norte has an international airport.

The tourism industry, driven by local airlines and land transportation firms in the area like Victory Liner, Five Stars, Solid North, Farinas Transit Company and Partas, focuses on the coastal beaches and on eco-tourism. There are fine sands stretching western Pangasinan, along Bauang and premium beach resorts in San Juan all in La Union and the rest of the region. Opportunities to engage in other water sports and activities abound. Eco-tourism takes advantage of the marine and forest resources in the Ilocos Region and displays the natural beauty of the place.

The region is also rich in crafts, with renowned blanket-weaving and pottery. The Ilocanos’ burnay pottery is well known for its dark colored clay.

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