’09 investment list okayed

Malacañang approved the 2009 Investment Priorities Plan that grants fiscal incentives to investment-generating activities and to those seeking to preserve jobs amid the global economic slump.President Arroyo said the Board of Investments and other agencies drew up the 2009 IPP as a tool to generate investments and create jobs as well as preserve employment amid the challenging economic environment.

“The 2009 IPP opens opportunities for the country to attract more quality investments into industries and services that would maintain and improve the country’s competitiveness and ensure employment for the Filipino people,” said the President in the order signed on March 30.

The 2009 IPP is an annual list of priority activities qualified to receive fiscal and non-fiscal perks administered by the BoI.

This year’s IPP is almost the same as last year’s, except that the Priority Investment Areas now include the so-called contingency list.

The contingency list includes activities that retain investments and maintain the current number of workers; keep investments and increase current number of workers; increase investments and maintain current number of workers; or increase investments and increase the current number of workers.

The list also covers new projects of micro, small and medium enterprises as defined by the Magna Carta for MSMEs. Enterprises registered under the list may be entitled to an income tax holiday.

The contingency list is a temporary inclusion in the IPP to mitigate the effects of the global crisis. It will be delisted after an official pronouncement by the National Economic and Development Authority that the crisis no longer exists. The BoI, based on certain indicators, may continue to qualify the list of industries or sectors that are still affected by the crisis.

The regular list of preferred activities include agriculture/agribusiness and fishery, infrastructure, engineered products, tourism, business process outsourcing, creative industries, strategic activities and research and development.

It also grants perks to activities under the mandatory list. Activities under this listing require their inclusion in the IPP as provided under existing laws such as the Philippine Mining Act, the Downstream Oil Industry Deregulation Act and the Renewable Energy Act.

It also grants incentives to export activities covering the manufacture of export products, services and activities in support of exporters.

The BoI, however, will not grant incentives to nine areas of activities that are not qualified under the contingency list. These include banks and financial institutions, retailing business and all services except those qualified under the regular list. –Elaine Ramos Alanguilan, Manila Standard Today