BOI prepares ‘contingency’ list under annual incentives program

The Board of Investments (BOI) is currently fast tracking the guidelines of the proposed 2009 Investment Priorities Plan (IPP), including the “contingency list” that would include firms, which would save or give jobs.

According to Trade Undersecretary Elmer Hernandez, the agency wants the guidelines to be ready as soon as the IPP has secured Malacanang approval and becomes effective.

Hernandez, who is also BOI managing head, told reporters that the agency is first finishing the guidelines for the regular list before it would come up with the guidelines for the 2009 IPP’s so-called contingency list, as coming up with policies for this additional listing is more complicated, he said.

“There are a lot of scenarios. [Many] possible permutations under the contingency list,” Hernandez said.

This contingency list—unique to this year’s IPP—would give incentives to firms that would save jobs amid the crisis. This would cover existing projects and/or activities which would: retain investments and maintain current number of employees; retain investments and increase current number of employees; increase investments and maintain current number of employees; or increase investments and increase current number of employees.

According to Hernandez, this would be the first time that the BOI would award perks to job-saving activities.

“We are currently in a difficult situation [due to the global financial crisis], that is why we have to take extraordinary measures to approach the situation. That is why we have this not ‘usual’ IPP,” Hernandez earlier said.

For the regular IPP list, he said that the agency is reviewing the policies under the 2008 IPP in light of the global economic slowdown.

“Amid the crisis, the BOI is looking at whether we have to relax some rules so that we can attain our goal of saving and creating jobs,” Hernandez said.

“Some restrictions on incentives availment are being studied [if they could be relaxed],” he added.

Possible adjustments for those with diminishing income tax holidays, large multiplier effects, and huge job-generation potentials, among others, are up for review, the official said.