The Department of Trade and Industry (DTI) on Wednesday said it has not endorsed the proposed amendments to the Philippine Economic Zone Authority’s (PEZA) charter.

Trade secretary Ramon Lopez said this in reply to PEZA director general Charito Plaza who claimed the DTI was informed of PEZA’s proposed amendments to Republic Act 7916, or the Special Economic Zone Act of 1995.

PEZA said that its proposed amendments will improve the operations of economic zones in the country.

Plaza said Lopez was given a copy of the proposal, which was also submitted to the House of Representatives and filed by lawmakers at the 18th Congress.

“From the very beginning, PEZA never expected the DTI secretary who is supposed to be the chairman of the PEZA Board to support the amendment. He never showed support and listened to the sentiments, issues, and problems of the industries,” Plaza said in a statement sent to reporters Tuesday night.

In a Viber message, Lopez said the statement was “unfounded, totally not fair and uncalled for.”

“The statements from DG Plaza does not have the endorsement of the board. And PEZA’s position on the tax reform and the moves to propose a new PEZA law are not officially endorsed,” Lopez said.

PEZA said that its proposed amendments will improve the operations of economic zones in the country, as it will also facilitate the removal of the PEZA as an attached agency to the DTI and potentially allow it more room in handing out incentives to locators.

Additionally, the inclusion of PEZA-registered firms in the Comprehensive Income Tax Reform and Incentive Rationalization Act (Citira) bill fuels PEZA’s bid to pursue the amendments.

The agency has been lobbying for the exemption of its locators from Citira, which aims to cut some incentives that locators have been enjoying as part of the bid to modernize the tax regime. PEZA says the country is set to lose investors’ confidence if the incentives it gives are scrapped.

“As chairman of the PEZA board, I have been hearing the side of industries and locators. Moreover, it’s actually PEZA locators that we have been representing so that they can have a reasonable transition period,” Lopez said.

“As long as PEZA is a government agency and a custodian of fiscal incentives, it is part of an overall tax reform that the government has adopted, which will bring benefits for the greater majority” he added.