Under ’13 IPP, mining firms may get less perks
The number of incentives granted to companies engaged in mining has been slashed under the 2013 Investment Priorities Plan submitted by the Board of Investments to President Aquino.
In a statement, the Department of Trade and Industry noted that, unlike the provisions set under the 2012 IPP, incentives in the 2013 IPP will be limited to zero duty on any importation of capital equipment, spare parts and accessories by BOI-registered mining enterprises.
The 2013 IPP likewise adopted terminologies consistent with the Department of Health (DOH) Administrative Order No. (AO) 2012-0012 for hospitals and health facilities. The proposed IPP transferred health and medical-related activities from the Tourism sector to Hospital/Medical Services sector for a more focused classification.
These were the few minor changes made under the IPP 2013.
The BOI, which spearheads the interagency effort to annually craft the IPP, retained the same priority areas as the 2012 IPP with improvements based on consultations with stakeholders, the DTI reported.
The proposed 2013 IPP roster included agriculture/agribusiness and fishery; creative industries/knowledge-based services; shipbuilding; mass housing; iron and steel; energy; infrastructure, research and development; green projects; motor vehicles; strategic projects; hospital/medical services; and disaster prevention, and mitigation and recovery projects.
Meanwhile, the BOI is already preparing the 2014 IPP. The agency is currently undertaking studies, in partnership with the private sector to develop the country’s industry roadmaps.
Trade Secretary Gregory L. Domingo earlier revealed that the agency hopes to issue the 2014 IPP by December this year as the government moves to “improve processes” that will allow identified sectors to take better advantage of their inclusion in the list over a longer period.
But Domingo declined to confirm if the 2014 IPP would be seeing a major overhaul, noting only that it would be difficult at this point to cite specific details.
The trade chief only revealed that they would be working closer with the National Economic and Development Authority (Neda) for the drafting of the 2014 IPP, specifically in the setting of the parameters for choosing the industries that will be eligible for incentives. This will allow the Department of Trade and Industry to align its goals more closely with the targets set under the Aquino administration’s Medium Term Development Plan.
The IPP is the country’s blueprint for investment promotions to develop the countryside and generate jobs.
In formulating the IPP, concerned government officials conduct nationwide public consultations. This year, the BOI held simultaneous consultations in the cities of Angeles, Manila, Cebu and Davao. The consultations were attended by members of various chambers of commerce, the academe, local government units, members of the interagency committees, nongovernment organizations and consumer groups.