The Cagayan Economic Zone Authority (CEZA) sees its investment portfolio further diversifying that would ensure a steady revenue stream for the agency.

CEZA reported it paid P83.316 million in taxes to the Bureau of Internal Revenue for the first nine months this year, a huge turnaround for the agency that went into deficit in 2017.

CEZA incurred a net loss of P64.925 million in 2017 after losing its major revenues from online gaming.

Secretary Raul Lambino, administrator and chief executive officer of CEZA,  said the Authority’s new ventures including the pioneering blockchain technology helped drive CEZA’s revenue earnings to P521.011 million afer three quarters this year.

The agency’s current revenue earnings represent a hefty 132 percent increase from CEZA’s 2017 revenue of P224.548 million.

Lambino, however, said CEZA  will not ely on fintech companies’ regulatory fees and the evenues generated from agency shares in the cryptocurrency exchange trading and initial coin offering (ICO) of the digital tokens and other blockchain products.

“Growth in the economic zone will be investment-driven (as) CEZA  will diversify,” Lambino added

Among the upcoming investments are  the $100-million leisure resort of Shanghai Juncheng; a research and development (R&D) center in Santa Ana town for training and production line of model units by Hunan Goke Maglev Technology Ltd.; another integrated resort by a foreign investor and an apparel factory by a global clothing brand/

The diversified investments, Lambino said, could generate more than 50,000 job opportunities in the next five years.

The FDIs are expected to create a bullish market with the lowest foreign investment pegged at $1 million for fintech operators alone, he said.

FDIs of companies that will secure a master licensor for online and land-based gaming is pegged at $100 million spread over 10 years in order to secure the establishment of the needed infrastructure, including hotels, theme parks and a golf course, among others.

Lambino said two big foreign companies are all set to acquire the remaining two slots for a master license in online and land-based gaming, raising the possibility for a far larger annual revenue by the end of the year.

The offshore firms that are interested to operate an online and land-based gaming at the zone would be required to pay more than P300 million in application and license fees alone not counting the multi-tiered shares from gross gaming revenues.

https://businessmirror.com.ph/fintech-venture-helps-ceza-address-deficit-pay-taxes/