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President Duterte has approved the new Investment Priorities Plan (IPP) which considers projects related to addressing the coronavirus disease 2019 pandemic and investments in rural areas as activities entitled to incentives.
Under the newly approved IPP, activities such as production of medicines, medical equipment and devices, personal protective equipment, surgical equipment and supplies, laboratory equipment and its reagents, medical supplies, tools and consumables including sanitizers and cleaning materials, and raw materials, as well as provision of services such as crematoriums, health waste treatment and disposal, laboratories, test facilities, hospitals and quarantine facilities in response to COVID-19 can get tax perks from the government.
In addition, investment activities which support programs to create job opportunities in the countryside including the proposed Balik Probinsya program can enjoy tax perks.
Qualified investments in the two activities mentioned above may get up to six years of income tax holidays.
Other preferred activities that may get tax perks listed under the IPP are manufacturing including agro-processing; agriculture, fishery, forestry; strategic services including integrated circuit design, creative industries, and maintenance, repair and overhaul of aircraft; healthcare and disaster risk reduction management services; mass housing; infrastructure and logistics including local government unit - public private partnership projects; innovation drivers; inclusive business models; environment or climate change-related projects; and those in energy.
Also listed in the IPP are export activities and activities covered by special laws.
Priority investment areas in the Bangsamoro Autonomous Region in Muslim Mindanao such as export activities; agriculture, agribusiness, aquaculture and fishery; basic industries including pharmaceuticals, textile, and water supply; infrastructure and services; industrial service facilities; engineering industries; logistics; Brunei Darusaalam-Indonesia-Malaysia-Philippines East ASEAN (Association of Southeast Asian Nations) Growth Area related investments; tourism; health and education services and facilities; halal industry; investment operations carried out by Islamic bank; and energy are likewise part of the IPP.
Under the memorandum order, the Board of investments (BOI) shall ensure the attainment and consistency with the state policies under Executive Order 226 or the Omnibus Investments Code, as well as the national goals of Bayanihan 1 and 2 laws in providing incentives.
“The chairman of the BOI shall render an annual report to the President on the accomplishments and implementation of the IPP,” the memorandum order read.
The order will take effect 15 days after its publication in a newspaper of general circulation.
This article was originally published by PhilStar.