DTI seeks simplified incentives

MANILA, Philippines – The Department of Trade and Industry (DTI) wants to simplify the country’s incentive regime by repealing incentive-giving laws and putting all incentives under the Investment Priorities Plan (IPP).

DTI Undersecretary Adrian Cristobal Jr. told reporters yesterday that as President Aquino has pushed for the legislation of the rationalization of fiscal incentives in his State of the Nation Address last month, the DTI is also working on its version of how the country’s incentive regime could be simplified.

“While the Congress is preparing, we can submit our own version too,” he said.

At present, Cristobal said there are 50 laws in the Philippines which provide incentives simplifying it would make the country more attractive to foreign investors.

“We can simplify it (incentive regime) by repealing laws and making them part of the IPP,” he said.

He said putting the incentive regime under the IPP would require setting criteria on what activities would be included in the IPP.

After the criteria is established, the DTI would then work on the kind of incentives that could be given to firms that engage in economic activities under the IPP.

He said streamlining the incentive regime would make the country more attractive to foreign investors.

Apart from simplifying the incentive regime through the IPP, Cristobal said the DTI also wants to come up with an IPP every three years instead of having a new one on an annual basis given the long process needed for the list to be completed.

The IPP serves as the country’s investment promotion blueprint.

Cristobal said that while the release of the 2013 IPP has been delayed, it would just be a carryover of last year’s IPP.

The 2012 IPP lists the following as preferred activities: agriculture/agribusiness and fishery, creative industries/knowledge-based services, shipbuilding, mass housing, iron and steel, energy, infrastructure and Public Private Partnership projects, research & development, green projects, hospital and medical services projects, motor vehicles, strategic projects, and disaster prevention and recovery projects.

It also has a mandatory list covering industries that require their inclusion in the IPP as provided for under existing laws and covers export activities as well as priority activities identified by the Regional Board of Investments of the Autonomous Region in Muslim Mindanao.

For next year, Cristobal said the DTI aims to have the 2014 IPP list by January. –Louella D. Desiderio (The Philippine Star)