FEB.

3, 2012 DATE

NR # 2668B
REF. NO.

Solon moves to boost footwear, leather goods and tannery industries

To help the footwear, leather goods and tannery industries overcome the challenges of trade globalization; a lawmaker has filed a measure seeking to amend Republic Act 9290 otherwise known as the Footwear, Leather Goods and Tannery Industries Development Act. Rep. Marcelino Teodoro (1st District, Marikina City) authored House Bill 5679 to remove the limited period provided in Section 3 of RA 9290 so that industry players can continue to avail of the incentives under the law. Teodoro said RA 9290 was enacted in April 2004 to recognize the footwear, leather goods and tannery industries potential to generate employment, as well as increase the countrys foreign exchange earnings through exports and import substitutes. According to Teodoro, one of the more important provisions of the law included time-bound incentives for qualified enterprises in the form of tax credits, additional deduction on gross income, zero duty on imported capital equipment and promotion, advertising and sale of locally manufactured finished products of these industries in the governments duty-free shops. Almost a decade since the enactment of RA 9290, these industries are still facing a great obstacle with many firms closing or folding up, Teodoro said. In pushing for the immediate approval of the bill, Teodoro cited a 2005 to 2009 data of the National Statistics Office (NSO) saying the footwear industry suffered a 14% decline in employment and a 7% decline in establishments. Teodoro also cited the declared policy of the State to support, promote and encourage the growth and development of small and medium scale enterprises (SMEs) belonging to these industries. Under the measure, Teodoro proposed to remove the maximum ten year-period so that incentives shall be available continuously by qualified footwear, leather goods and tannery enterprises. The Department of Finance (DOF), Bangko Sentral ng Pilipinas (BSP) and the Securities Exchange Commission are directed to promulgate and publish the necessary rules and regulations for the effective enforcement of this Act. (30) lvc