Quantcast
Latest Stories

Investors back Peza push to less developed sites

By

MANILA, Philippines—Developers will have to look outside the likes of Metro Manila and Metro Cebu to enjoy perks accorded to locators in tourism economic zones and information and technology (IT) parks.

The Philippine Economic Zone Authority (Peza) board has approved new rules for tourism economic zones where development must take place outside Metro Manila, Cebu City, Mactan Island and Boracay.

Under Resolution no. 12-610, tourism economic zones and its locator-enterprises in Metro Manila, Cebu City, Mactan Island and Boracay will no longer enjoy the five-percent gross income tax incentives.

But locators may still enjoy tax- and duty-free importation and zero-VAT [value-added tax] rating on local purchases, the resolution said.

Existing developments may continue to operate, while developers, operators and locators in areas that have already registered with Peza will not be covered by the new rules as well.

By establishing the new set of rules, Peza hopes to spur investors to develop other less prominent but no less attractive areas of the country.

Italian Chamber of Commerce in the Philippines Inc. president Alessandro Abbate told reporters that, because of the tax breaks being offered, investors are now eager to embark on projects to develop new growth areas for tourism.

“Developments in areas outside the major centers will create jobs, and this will help the local economy,” Abbate said.

Julius Guevara, associate director of real estate consultancy Colliers International Philippines, said that developers would likely go to fringe cities to take advantage of low land rates and incentives under the new rules.

But for some developers the benefits of locating to major urban zones like Metro Cebu tend to outweigh the prospect of losing incentives.

But Guevara said that developers could undertake projects “in both the major urban areas or in fringe areas where they can enjoy incentives.”

Earlier this year, Peza issued Resolution 12-329 where IT facilities and parks would no longer enjoy a 5-percent tax incentive.

Among the Peza-registered IT parks in Metro Manila and Cebu are the Northgate Cyber Zone in Alabang, Robinsons Cyberpark on Edsa, Eastwood City Cyberpark in Quezon City, E-Square Information Technology Park in Bonifacio Global City and the Cebu IT Park.

The new rules only affect owners of the buildings and facilities where locators can still be housed. These locators will still be able to enjoy Peza incentives like tax breaks.

Guidelines for the establishment of special economic zones have also been included in the new set of rules.

Developers and operators of new special economic zones for manufacturing, agro-industry, tourism and the like—occupying  less than 25 hectares of land—will not be entitled to Peza incentives.

Also, a different set of guidelines have been drawn up for single locator economic zones.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , IT parks , Peza perks , Philippine Economic Zone Authority , Philippines , tourism economic zones

  • mark1205

    Yeah. Convert all our agricultural lands into more urban sprawl. Destroy our forests, reserved buffers for urban sprawl. We need to concentrate development. We cannot even have good sidewalks in just a few square kilometers of land what more when the entire boundaries of cities are filled with buildings and extending far beyond supposed. The same is true for electricity, water. We don’t only think of areas for factories. They bring with them housing, services, commerce. Look at other nations– You can see wide clusters of the same use. Here, all dispersed.

  • Bring back Phils Glory. Unite.

    wow what a paradigm shift. great minds!



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Camilla’s brother dies in US after head injury
  • Luisita farmers storm DAR compound
  • Trillanes, Ejercito confident they are not in Napoles’ list
  • Easterlies to prevail in Luzon, Visayas
  • Lacson eyes P106-B ‘Yolanda’ rehab masterplan
  • Sports

  • Mixers trim Aces; Painters repulse Bolts
  • Donaire junks Garcia as coach, taps father
  • ’Bye Ginebra: No heavy heart this time
  • UAAP board tackles new rules
  • Baguio climb to decide Le Tour de Filipinas
  • Lifestyle

  • Photos explore dynamics of youths’ sexual identity
  • 12th Philippine Food Expo set at the World Trade Center
  • No tourist draw, Malang the croc will remain wild
  • The best flavors of summer in one bite, and more
  • Homemade yogurt, bread blended with pizza, even ramen
  • Entertainment

  • Sony developing live-action Barbie comedy
  • California court won’t review Jackson doctor case
  • Return of ‘Ibong Adarna’
  • Practical Phytos plans his future
  • In love … with acting
  • Business

  • Facebook profits triple as mobile soars
  • Insular Honors Sales Performers at Testimonial Rites
  • Apple increases stock buyback, will split stock
  • Cost-recovery provisions for affected gencos urged
  • This time, BIR goes after florists
  • Technology

  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Engineers create a world of difference
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • Filipinos in Middle East urged to get clearance before returning
  • PH seeks ‘clearer assurance’ from US
  • China and rivals sign naval pact to ease maritime tensions
  • What Went Before: Manila bus hostage crisis
  • Obama arrives in Tokyo, first stop of 4-nation tour
  • Marketplace