From the existing annual review, the 2014 Investments Priorities Plan (IPP) will now be valid for three years and will end to coincide with the Philippine Development Plan’s (PDP) end-of-term in 2016.
The Board of Investments (BOI) aimed this move to draw investors towards choosing Philippines as investment destination by creating a more consistent, coherent, and predictable policy. BOI is also giving the areas with less exposure a chance to gain more investments by imposing three year validity for the new IPP (Investment Priority Plan).
In a recent public consultation with private-sectors and stakeholders, BOI released a preliminary list of sectors which may avail tax incentives. The seven sectors include the following:
1. Manufacturing (motor vehicle assembly, engineered products, chemicals including fertilizers and pesticides, copper wire rod, paper pulp);
2. Agribusiness and fisheries (extraction of natural ingredients, mechanized agri-support services, and agricultural infrastructure support);
3. Services (integrated circuit design, ship repair, testing facilities, charging stations for e-vehicles);
4. Economic and low-cost housing (both horizontal and vertical);
5. Energy (energy exploration and development of energy sources and power-generation plants)
6. Public infrastructure and logistics (airports, seaports, and PPP projects)
7. Sectors mandated by law to be entitled to incentives (tree plantation, mining, refining, storage and distribution of petroleum products, renewable energy and tourism).
The present draft focuses on sub sectors rather than broad areas of preferred economic activities. Currently, BOI is conducting a series of consultations nationwide to finalize the 2014 IPP.
If you are looking to learn more about the IPP 2014 and other investment programs and incentives in the Philippines, do not hesitate to contact us.
May Anne Cruz-Ofalla, Associate Account Executive
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