Proposed Guidelines on the Implementation of 15% Incentive for Environment and Tourism Administrative Fee (ETAF)

June 23, 2016

SBMA CERTIFICATION NO. 16-190

MEMORANDUM

 

This certifies that:

The records of the Office of the Corporate Secretary show that during the Three Hundred Eighteenth (318th) Meeting of the Board of Directors of the Subic Bay Metropolitan Authority held last 16 June 2016 wherein there was a quorum to validly transact business, the following resolution was approved:

Resolution No. 16-06-5801

"Resolve, as it is hereby resolved, that upon recommendation of Management and without prejudice to COA Regulations and pertinent laws on the matter, the Board hereby approves the Proposed Guidelines on the Implementation of 15% Incentive for Environment and Tourism Administrative Fee (ETAF) as presented to the locators during the Public Hearing.

A hard copy of the Management's PowerPoint presentation is incorporated herein by way of reference."

Issued this 23rd day of June 2016.

(SGD.) RUBEN O. FRUTOCorporate Secretary

PROPOSED GUIDELINES ON THE IMPLEMENTATION OF 15% INCENTIVE FOR ETAF-PAYING TOURISM STAKEHOLDERS

PUBLIC FORUM ON THE PROPOSED GUIDELINES ON THE IMPLEMENTATION OF 15% INCENTIVE FOR ETAF-PAYING TOURISM STAKEHOLDERS

DATE: February 23, 2016 2:30-3:30 PM

VENUE: VIP 1 AND 2, Subic Bay Exhibition and Convention Center

NUMBER OF ATTENDEES: 150 pax (Tourism Locator's Representatives, SBMA officials and Personnel)

MAJOR CONCERNS VOICED DURING THE CONSULTATION:

1. The 15% will come as a revenue for the stakeholder and is taxable.

2. Ms. Donna May Tamayo of SBFCC suggested that aside from Tourism projects ETAF revenues should also be utilized on purchasing of harbor patrol boats and environmental protection projects.

3. It is suggested that the ETAF must be collected by the Agency through entry of tourists on the Subic Bay Freeport Zone and must not be done by the stakeholders alone.

NOTE: Stakeholders were given 15 days to comment on the guidelines but no one sent a letter to Tourism.

PROPOSED GUIDELINES ON THE IMPLEMENTATION OF THE 15% INCENTIVE FOR ETAF-PAYING TOURISM STAKEHOLDERS

As approved by the SBMA Board of Directors, a 15% incentive may be given to all establishments who collect the ETAF for and in behalf of SBMA in accordance with the following guidelines.

1. An initial audit of all establishments required to collect ETAF shall be conducted by the Internal Audit Service Office (IASO) of the SBMA. Said audit aims to determine the correctness of previous remittances, as well as non-remittances by concerned stakeholders. As of 2016, the following types of establishments are required to remit ETAF: hotels, theme parks, golf course, beaches and all other establishments with fixed entrance rates.

2. Should there be discrepancies, a moratorium on fines and penalties shall be observed. However, concerned-stakeholders are required to settle all balances prior to entitlement to the 15% incentive.

3. Upon entitlement to the 15% incentive, the lease agreement or sublease agreement of the stakeholder shall be amended to reflect: DcHSEa

A. the obligation of the stakeholder to collect the ETAF for and in behalf of SBMA; and

B. the entitlement of the stakeholder to a 15% discount for prepaid ETAF tickets

4. The ETAF tickets may pre-paid at 85% value, following the scheme below:

	Regular ETAF Fee	ETAF Fee with 15% Discount
1. Accommodations
a. 1st Five 5 nights	P100/night	P85/night
b. Sixth (6th) to 29th night	P50/night	P42.50/night
c. Dorm Type	P25/bed/night	P21.25/bed/night
2. Entrance Fees
Swimming Pools, Beach	P20/pax	P17/pax
entrance, theme park	P15/pax	12.75/pax
entrances	P10/pax	P8.50/pax
	P5/pax	P4.50/pax
3. Golf Course	P100/pax	P85/pax

Note: SBMA facilities are not included in the incentive scheme

5. All ETAF tickets shall be claimed from the Tourism Office, 2nd/Floor, Subic Bay Exhibition and Convention Center (SBECC), Subic Bay Freeport Zone.

6. The establishment shall submit the names of their authorized representative who shall secure the tickets.

7. ETAF tickets may be bought on a pre-paid basis per booklet, which contains 100 tickets/booklet, regardless of denomination. Said booklets shall be paid to the Cashier on duty at SBECC or at the Treasury Office, Ground floor, Building 229, Waterfront Road, Subic Bay Freeport Zone.

8. All concerned establishments have the option of paying the ETAF on a monthly basis on a post payment scheme. However, they shall not be entitled to the 15% incentive and shall pay full amount of the fee. In case of ticket loss, the establishment shall pay the full amount of the tickets.

9. The establishment shall submit an Inventory Report of the tickets (Annex A) to identify tickets issued during the period as well as remaining tickets to Tourism Office and remit the collection to the Cashier on or before the 20th day of the month.

10. The establishment on post payment scheme may replenish their ETAF ticket when the balance is only 25% of the booklet and upon submission of an Inventory Report.

11. The operating procedures is attached as Annex B.

12. The Treasury Department shall be responsible in coming up with a monthly report of collection on ETAF. Said report shall be submitted to the Tourism Department on the 5th working day of the month for consolidation with the report of stakeholders that availed of the post payment scheme.

13. The consolidated report shall then be submitted to the Internal Audit Service Office, Office of the Deputy Administration for Finance, Office of the Senior Deputy Administrator for Support Services, and Office of the Chairman on the 10th working day at the end of the Month.

14. FINES AND PENALTIES

a. Late filing failure to file, and late or non-remittance

1st Offense — 12% Surcharge + 12% interest per annum

2nd Offense — 12% Surcharge + 12% interest per annum + suspension of CRTE and/or BPTO until filed and paid

3rd Offense — 12% Surcharge + 12% interest per annum + cancellation of CRTE and/or BPTO

b. Failure to issue receipt, filing a false declaration, or non-remittance of the full/correct amount

1st Offense — fine of P25,000

2nd Offense — fine of P50,000 and suspension of CRTE and/or BPTO for 90 days

3rd Offense — fine of P75,000 + cancellation of CRTE and/or BPTO

ANNEX A

Monthly Accountable Ticket Report

TICKET ISSUANCE PRE-PAYMENT MODE:

ANNEX B

1. The Establishment's Representative (ER) proceeds to the ETAF Ticket Custodian (ETC) at the Tourism Office and submits duly filled up Ticket Order Slip (TOS) (Annex 1) to secure ETAF tickets.

2. ETC shall review the TOS and write down the ticket series, Qty. and Total Amount of the ordered tickets. SCaITA

3. ETC shall prepare and Issue Billing Assessment (BA) based on ER's Tickets Order Slip citing ticket series to be issued and the computation of Total Amount, Discount and Net Amount for payment.

4. The ER proceeds to the Treasury's Cashier to pay the Net Amount.

5. The Cashier checks on BA and payment, then issues O.R. to the ER.

6. The Customer returns to the ETC to claim the tickets.

7. The ETC stamps the triplicate copy of the BA as PAID and write down the O.R. No./Date.

8. The ETC records the issuance of the tickets in the ETAF-Prepayment Logbook (Annex 2-A) for record purposes.

9. The ER shall receive the ETAF tickets and sign in the Logbook and the TOS.

10. The ETC shall provide a copy of the signed TOS to the ER.

TICKET ISSUANCE POST PAYMENT MODE:

ANNEX B

1. The Establishment's Representative (ER) proceeds to the ETAF Ticket Custodian (ETC) at the Tourism Office and submit duly filled up Ticket Order Slip (TOS) (Annex 1) to secure ETAF tickets.

2. ETC shall review the TOS and write down the ticket series, Qty. and Total Amount of the ordered tickets.

3. The ETC records the issuance of the tickets in the ETAF-Post payment Logbook (Annex 2-B) for record purposes.

4. The ER shall receive the ETAF tickets and sign in the Logbook and the TOS.

5. The ETC shall provide a copy of the signed TOS to the ER.

REMITTANCE

1. The ER submits the Inventory Report on or before the 20th day of the month to the ETAF Ticket Custodian (ETC).

2. ETC reviews the Inventory Report and compares the beginning as against the previous months ending balance.

3. ETC prepares and issues the Billing Assessment citing the ticket series were issued and to be paid by the ER.

4. The ER proceeds to the Treasury's Cashier to pay the Net Amount.

5. The Cashier checks on BA and payment, then issues O.R. to the ER.

Annex 1

Ticket Order Slip

Annex 2-A

Environment and Tourism Administrative Fee (ETAF)

ETAF-Prepayment Logbook

Annex 2-B

Environment and Tourism Administrative Fee (ETAF)

ETAF-Post payment Logbook

ETAF REVENUES AND UTILIZATION

		COLLECTION	UTILIZATION
1	APRIL TO DECEMBER 2014	5,347,474.30	1,346,240.07
2	JANUARY TO DECEMBER 2015	7,373,739.11	9,123,399.92
3	JANUARY TO MAY 2016	3,450,491.05
	TOTAL	16,171,704.46	10,469,639.99

 

PROPOSED TOURISM PROJECTS TO BE CHARGED TO ETAF FOR 2016

1.	Advertising and Promotions
	a. Participation in Trade Fairs and Travel Marts	5,900,000
	(local/international)
	b. Collaterals (brochures, maps, calendars, souvenirs etc.)	3,000,000
	c. Projects
	Tatak Subic (workshops/seminars/materials for creation of	1,500,000
	modules)
	d. Various Services
	Consultancy for Tourism Development Projects	2,500,000
2	Events
	Trap Events:
	National Age Group Triathlon-Trap	72,000
	ASIAN TRIATHLON CHAMPIONSHIP (ASTC)	216,000
	Asian Para Triathlon Championship (ASPC) TRAP	72,000
	Ironman 70.3 Triathlon-Sunrise Events, Inc.	1,015,000
	Regent 5150 Triathlon-Sunrise Events, Inc.	915,000
	Holy Week Celebration	1,000,000
	Subic Bay Flores de Mayo	100,000
	(Grand Santacruzan) SBMA
	National Tourism Week Celebration-SBMA	450,000
	Festival of Festivals Teaser	500,000
	Subic Bay Festival (SBMA Anniversary/Christmas Kickoff/Lighting of	5,000,000
	the Christmas Tree) — SBMA
	Holidays and New Year's Eve Countdown	1,600,000
	TOTAL	23,840,000

PROPOSED ECOLOGY PROJECTS TO BE CHARGED TO ETAF FOR 2016 aTHCSE

1	Environmental Forums (June	P120k	IEC activities with
	and Sept)		Locators/Stakeholder about best
			practices and updates in
			environmental management
			The Climate Change Management &
			Green Energy Forum is already
			completed using our regular budget
			(P40k)
2	Environmental Information &	P160-200k	Participants' Meal & Snacks in
	Communication activities		Morong, Tipo & Pastolan, Bangal and
			Mabiga.
3	Arbor Day (June 25)	P250k	Purchase of drought resistant
			Planting Materials, Meals, Snacks
			target participants is 1000
4	Earth Day 2016 (April 22)	P84k	Meals and Snacks and
			Commemorative Shirts of
			participants.
5	Flow Meter	P50k	The flow Meter measures stream flows
			from our river systems
6	Chemical Oxygen Demand	P300k
			Analyzer
7	Gas/Diesel Analyzer	P850k	To be used in the measurement of
			smoke emissions for mobile sources.
			Essential for our accreditation process
			and road side anti smoke belching
			operations.
8	Bokashi Balls		For abatement or neutralizing biological
			pollutants in the Olongapo City river
			systems that drains to the bay.
	TOTAL	P2,204k+

Requesting approval of the Guidelines as the presented to the locators during the Public Hearing, as well as approval of the Proposed projects of Tourism and Ecology.