MALACAÑANG on Tuesday approved this year’s Investment Priorities Plan (IPP), which lists the businesses that would benefit from tax and other incentives.
“The Cabinet approved the IPP for 2010 without revision,” acting Socioeconomic Planning Secretary Augusto Santos told reporters.
Santos said the 2010 IPP would extend tax perks to importers of generator sets (gensets) intended for use in Mindanao, which is suffering from a huge electricity shortfall.
Electric cooperatives that would import gensets may be granted perks such as duty- and tax-free importation.
Also, rehabilitation of existing power plants may qualify under the IPP’s infrastructure list.
The government also extended similar incentives during the power crisis in the early 1990s.
“Green” and “disaster prevention, mitigation and recovery” projects also qualify for availment of tax breaks this year.
Projects such as rebuilding of roads and bridges after earthquakes, floods, or volcanic eruptions; oil spill clean up; training for disaster preparedness, mitigation, or recovery/rehabilitation/reconstruction will be given tax perks.
Also included on the IPP list are cement, drugs and medicines, all of which are considered manufactured goods under priority investment areas.
The government also extended tax breaks to companies under the “contingency list,” which covers existing activities and/or projects affected by the global economic crisis that will retain investments and employment, retain investments and increase employment, increase investments and retain employment, or increase investments and employment.
Micro and small businesses also can enjoy fiscal and other incentives in line with the government’s efforts to support entrepreneurship.
Micro enterprises are businesses with assets of no more than P3 million, or employment of up to nine people. A small enterprise has assets of between P3 million and P15 million, or employ between 10 and 99 workers.
Latest data from the Department of Trade and Industry show that about 92 percent of local businesses are micro enterprises and about 7 percent are small enterprises.
Projects not qualified under the micro-small enterprises list are those of banks and financial institutions; retail businesses; services; small-scale mining; activities that are restricted/regulated by law or ordinances for reasons of security, defense and risk to health and morals; activities of non-Philippine nationals that are not qualified under the Foreign Investment Act; non-agricultural basic consumer goods; personal care products; power and infrastructure projects with sovereign guarantee or granted income tax holiday; and other activities as may be determined by the Board of Investments. –DARWIN G. AMOJELAR Senior Reporter, Manila Times
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