[ad_1]
MANILA, Philippines – The Senate approved a bill on Monday in the third and final reading that grants a 50-year franchise to a San Miguel Corp. (SMC) subsidiary to build an airport in Bulacan.
With 21 affirmative votes and no negative votes, the senators approved House Bill No. 7507, which grants a franchise to San Miguel Aerocity Inc. to “build, develop, establish, operate and maintain a national and international airport” in Bulakan, Bulacan.
According to the bill, the franchisee will also have “the right to build, acquire, lease, operate or manage those properties that are convenient or essential to efficiently carry out the objectives of this Law, such as highways, railways, mass transportation, hotels, warehouses, hangars, aircraft service stations and other facilities, as well as developing the areas adjacent to the airport in a comprehensive and comprehensive development, hereinafter collectively referred to as the Airport City ”.
“All airport properties and facilities that are owned, maintained, operated or managed by the concessionaire, its successors or assignees, must be operated and maintained at all times in the best, cautious and diligent manner and in accordance with the rules, practices and procedures required by the Manual of Standards-Aerodromes ”, said the bill.
This franchise will be effective for a period of fifty (50) years after the proposed law is approved. The term of the franchise includes the 10-year construction period of the airport.
After the franchise expires, the concessionaire must hand over the airport property to the Department of Transportation, per the bill.
The franchise bill also exempts San Miguel Aerocity Inc. from all direct and indirect taxes and fees during its construction period.
After the construction period and for the remaining term of your franchise, you will be exempt from income and property taxes only until you have recovered your investments. After this, you will be subject to all taxes thereafter.
Aside from post-payback taxes, the government is also willing to share its revenue more than its 12 percent profit margin, the bill adds.
[ad_2]
