Philippines reviews incentives for investors

Phil BOI1The Philippines’ Board of Investments (BOI) is reviewing for the first time the country’s 1987 investments code to refine the criteria for granting tax incentives to investors, the Malaya newspaper reports. The outcome would be a drastically different proposed 2014 Investment Priorities Plan (IPP).

Adrian Cristobal Jr., managing head of the BOI, said at a press conference that industries will be measured based on their potential competitiveness and their importance to the country’s aim of industrialisation. All other criteria like value-added, impact on the economy and job generation will strictly apply to ensure that those sectors given incentives will have significant contribution to development.

Cristobal said BOI will trim down the list by identifying more strategic areas of different sectors that need to be promoted, with emphasis on the specific gaps or value chains required to attract investments. He said there is a need to sharpen the focus of the 2014 IPP as this will be designed to cover three years for more consistency and predictability of policies.

He added that the 2014 IPP, since it will be more mid-term in effect, will go through a rigorous process using the development roadmaps designed by industry groups as basis.

The new IPP, including its implementing rules and regulations (IRR), is targetted for issuance no later than March 2014.

He explained that when the Code was issued at the time, it had manufacturing and not services in mind such that the criteria for the minimum amount of investments was “brick and mortar facilities.” Today, though, there are technology projects that may require less investment or fewer employes but whose output has a significant impact on the economy.

“Times have changed. Do we impose the same level of investments for an automotive manufacturing and a technology (project)? So we have to refine that part,” Cristobal said. Cristobal said the BOI is also reviewing the IRR of the Omnibus Investments Code which was issued in 1987 and will release it in early 2014. The changes will be calibrated with the 2014 IPP.



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The Philippines' Board of Investments (BOI) is reviewing for the first time the country's 1987 investments code to refine the criteria for granting tax incentives to investors, the Malaya newspaper reports. The outcome would be a drastically different proposed 2014 Investment Priorities Plan (IPP). Adrian Cristobal Jr., managing head of the BOI, said at a press conference that industries will be measured based on their potential competitiveness and their importance to the country’s aim of industrialisation. All other criteria like value-added, impact on the economy and job generation will strictly apply to ensure that those sectors given incentives will have...

Phil BOI1The Philippines’ Board of Investments (BOI) is reviewing for the first time the country’s 1987 investments code to refine the criteria for granting tax incentives to investors, the Malaya newspaper reports. The outcome would be a drastically different proposed 2014 Investment Priorities Plan (IPP).

Adrian Cristobal Jr., managing head of the BOI, said at a press conference that industries will be measured based on their potential competitiveness and their importance to the country’s aim of industrialisation. All other criteria like value-added, impact on the economy and job generation will strictly apply to ensure that those sectors given incentives will have significant contribution to development.

Cristobal said BOI will trim down the list by identifying more strategic areas of different sectors that need to be promoted, with emphasis on the specific gaps or value chains required to attract investments. He said there is a need to sharpen the focus of the 2014 IPP as this will be designed to cover three years for more consistency and predictability of policies.

He added that the 2014 IPP, since it will be more mid-term in effect, will go through a rigorous process using the development roadmaps designed by industry groups as basis.

The new IPP, including its implementing rules and regulations (IRR), is targetted for issuance no later than March 2014.

He explained that when the Code was issued at the time, it had manufacturing and not services in mind such that the criteria for the minimum amount of investments was “brick and mortar facilities.” Today, though, there are technology projects that may require less investment or fewer employes but whose output has a significant impact on the economy.

“Times have changed. Do we impose the same level of investments for an automotive manufacturing and a technology (project)? So we have to refine that part,” Cristobal said. Cristobal said the BOI is also reviewing the IRR of the Omnibus Investments Code which was issued in 1987 and will release it in early 2014. The changes will be calibrated with the 2014 IPP.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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