DTI seeks repeal of special laws granting perks
The Department of Trade and Industry is seeking the repeal of over 50 special Philippine laws granting fiscal and non-fiscal incentives to various industries, as it moves to streamline the country’s incentive regime.
The plan is to consolidate all the incentives given to companies under the trade agency’s Investment Priorities Plan (IPP), Trade Undersecretary Adrian S. Cristobal Jr. said in a briefing Thursday.
“Part of streamlining is to simplify. That would mean repealing laws and bringing them into the ambit of the IPP process, as well as setting clear criteria on how to be included in the economic activities [under the IPP],” he said.
The IPP, which is crafted annually by the DTI’s Board of Investments, identifies priority activities eligible for incentives. It is the country’s blueprint for investment promotions and a platform to attract strategic investments for countryside development and employment generation.
“We can submit our version of [the planned rationalization] of fiscal incentives. Let’s streamline the different laws on who should be entitled [to perks]. As of now, I think, we have over 50 special laws that provide incentives to different sectors. Now in some of these laws, the incentives provided are coursed through the BOI. There are other laws, for instance on tourism, that grant the power to other agencies to give incentives,” Cristobal explained.
“The first step is, if we can just streamline all those 50 laws into a simple system under the IPP. As we get through that, we can deal with the structures, the methods or processes and the kind of incentives,” he added.
In setting the criteria, industry roadmaps are prepared. These will serve as inputs to the IPP, the trade official added.
The BOI Thursday said that most of the sectoral roadmaps would be completed within the year. The roadmaps will set the direction and policies for various industries.
On August 13, the BOI may release the roadmaps for the chemicals, copper, and manufacturing industries.
