With IEB in place, next task is BARMM tax code–solon

By Jovee Marie N. dela Cruz @joveemarie

IN response to the recent formalization of the Inter-governmental Energy Board (IEB), an economistlawmaker said the House of Representatives will work with the national government and engage the Bangsamoro government on the region’s Tax Code. This is part of efforts to ensure that the tax regime for oil and gas exploration and extraction in the region are “clean, fair, and square.”

H ouse Committee on Ways and Means Chairman Joey Sarte Salceda said in a statement at the weekend that the key to Philippine energy security could be in Bangsamoro.

T he IEB, which will manage the extraction of petroleum reserves in the Bangsamoro, was created this week in the presence of President

Ferdinand Marcos Jr. T he board’s duties will include setting policies for the extraction of oil and gas in the Bangsamoro region, which covers such gas-rich areas as the Liguasan Marsh.

Liguasan Marsh is suspected to have the largest deposits of natural gas in Southeast Asia. Now, we can’t know for sure, because prospect - ing has been limited by lack of investments and the peace and order situation, until now. The BARMM government and close collaboration with the National Government gives us the opportunity to do that,” Salceda said.

T he Liguasan Marsh, which includes large swathes of BARMM, is a 220,000-hectare wetland with proven reserves of natural gas.

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It could be the key to energy independence for the Philippines, especially with the shift towards LNG as a transition away from coal. It could also make BARMM one of the richest areas in the country, if we can manage governance well,” Salceda said.

H e added that clarifying its tax regime early on is an opportunity to “start on the right foot and correct the mistakes of our existing tax regime on oil and gas exploration, under Presidential Decree No. 87.”

The opportunity here is we start on a more or less blank slate in terms of policy,” Salceda said.

S alceda added that he is now working with the Office of the Presidential Adviser on Peace, Reconciliation, and Unity, and will be engaging the Bangsamoro Parliament, in ensuring that the

PSAC: EO 32 TO SPEED UP VITAL TELCO, INTERNET INFRA WORKS

BARMM Tax Code is “constitutional, consistent, and constructive,” especially in areas of oil and gas exploration.

“ The regime I envision is 60 percent of net revenues go to government, equally shared between BARMM and the NG, in lieu of any and all taxes. Of course, that decision is to be made by the Bangsamoro Parliament, but my Committee will offer its expertise and perspective,” he said.

“ We want no hiccups once exploration begins, so anything that might be litigious or contentious is best ironed out. I am happy to say that my initial discussions with BARMM stakeholders were received with openness and enthusiasm,” Salceda added.

THE Private Sector Advisory Council (PSAC) welcomed President Ferdinand R. Marcos Jr.’s issuance of Executive Order (EO) No. 32, a measure which streamlines the permitting process for the construction of telecommunications and internet infrastructure in the country. This measure is “crucial” for the advancement of the country’s economy and well-being of its citizens, PSAC said.

The Private Sector Advisory Council wholeheartedly supports President Marcos’ initiative to streamline the permitting process,” Sabin Aboitiz, PSAC lead convener and Aboitiz Group president and CEO said in a statement.

B y reducing bureaucratic red tape and harmonizing the procedures involved in infrastructure development, EO. 31 will “accelerate” the deployment of critical telecommunications and Internet infrastructure across the nation, Aboitiz said.

cess will attract more investments, encourage innovation, and enhance connectivity, “ultimately benefiting” the Filipino people.

M arcos Jr. signed EO No. 32 on July 4, 2023 in a bid to sustain the development of the nation’s digital infrastructure by institutionalizing a set of streamlined guidelines for the issuance of permits, licenses, and certificates for the construction of telecommunications and Internet infrastructures.

T he order covers all national government agencies and instrumentalities, including government-owned or controlled corporations as well as local government units (LGUs) involved in the issuance of permits, licenses, clearances, certifications, and authorizations.

A mong those covered are the construction, installation, repair, operation and maintenance of Shared Passive Telecommunications Tower Infrastructure; and, erection of poles, installation of aerial and underground cables and facilities, underground fiber ducts, ground terminals, and other transmission telecommunications and Internet infrastructure and facilities.

The PSAC believes that a robust and efficient digital infrastructure is crucial for the advancement of the country’s economy and the well-being of its citizens,” Aboitiz added.

T he Council also thinks the streamlined permitting pro -

T his week, the OPAPRU under Secretary Carlito Galvez also released a statement thanking Salceda for his support for the peace process. Our discussion with Rep. Salceda was very productive. We identified possible areas of collaboration, particularly on how we can enhance the delivery of our peacebuilding initiatives in the Bangsamoro and other conflictaffected areas in the country,” Galvez said in the statement. See