BoI to overhaul incentive policy
By Elaine Ruzul S. Ramos - Manila Standard Today
The Board of Investments will overhaul the country’s incentive policy, including the granting of perks to micro small and medium enterprises and new investments.
“We’ll have universal incentives that don’t make exception whether you are an export- or domestic-oriented firm. Then, we’ll have additional incentives specific to export-oriented, for domestic and for MSMEs,” said Trade Undersecretary Elmer Hernandez.
The incentives board is drafting a bill that will amend Executive Order 226, or the Omnibus Investment Code, to address redundant incentives.
“It will be a major overhaul of the previous bill. This new bill would incorporate inputs from the previous bills in the Senate and the House as well as the study funded by the International Finance Corp.,” Hernandez said.
The new framework will also include the duration of incentives to be extended to new investments.
Hernandez said the amended framework would ensure that incentive policies on new investments would be the same everywhere, whether one is administered by the investments board itself, or the Philippine Economic Zone Authority, Subic Bay Metropolitan Authority, Clark Development Corp., or any other state-owned investment-promotion agency.
Hernandez said the investment priorities plan, under the amended code, would now be project-and activity-based.
He said the government would now be specific on which infrastructure project would be offered to investors.
President Gloria Macapagal Arroyo, in her State of the Nation Address last month, identified crucial projects aimed to sustain the development of her super-regions.
The grant of incentives in the manufacturing and services will be activity based, which means only certain sectors prioritized by government will entitled to perks.
The incentives on export-oriented enterprises will depend on whether they are inside economic zones or not.
“Existing incentives would still carry but we are looking at leveling the playing field for exporters, whether they are inside ecozones or outside. For example, we will try to match incentives granted by Peza to their locators, to those investments located outside ecozones,” Hernandez said.
MSMEs, meanwhile, will also have a separate set of incentives.
The Board of Investments will overhaul the country’s incentive policy, including the granting of perks to micro small and medium enterprises and new investments.
“We’ll have universal incentives that don’t make exception whether you are an export- or domestic-oriented firm. Then, we’ll have additional incentives specific to export-oriented, for domestic and for MSMEs,” said Trade Undersecretary Elmer Hernandez.
The incentives board is drafting a bill that will amend Executive Order 226, or the Omnibus Investment Code, to address redundant incentives.
“It will be a major overhaul of the previous bill. This new bill would incorporate inputs from the previous bills in the Senate and the House as well as the study funded by the International Finance Corp.,” Hernandez said.
The new framework will also include the duration of incentives to be extended to new investments.
Hernandez said the amended framework would ensure that incentive policies on new investments would be the same everywhere, whether one is administered by the investments board itself, or the Philippine Economic Zone Authority, Subic Bay Metropolitan Authority, Clark Development Corp., or any other state-owned investment-promotion agency.
Hernandez said the investment priorities plan, under the amended code, would now be project-and activity-based.
He said the government would now be specific on which infrastructure project would be offered to investors.
President Gloria Macapagal Arroyo, in her State of the Nation Address last month, identified crucial projects aimed to sustain the development of her super-regions.
The grant of incentives in the manufacturing and services will be activity based, which means only certain sectors prioritized by government will entitled to perks.
The incentives on export-oriented enterprises will depend on whether they are inside economic zones or not.
“Existing incentives would still carry but we are looking at leveling the playing field for exporters, whether they are inside ecozones or outside. For example, we will try to match incentives granted by Peza to their locators, to those investments located outside ecozones,” Hernandez said.
MSMEs, meanwhile, will also have a separate set of incentives.
Labels: boi, incentives, investment, smes
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