PH firms eye tax perks, make a beeline for BOI

Export companies engaged in the manufacture of power supply products and garments want to avail of tax perks and other incentives from the Board of Investments (BOI), as provided under the 2013 Investments Priorities Plan (IPP).

In a notice, the BOI said Celeraise Electronic Corp., which has a manufacturing plant in Carmona, Cavite, would apply for the incentives as a new export producer of power supply products on a nonpioneer status.

Celeraise Electronics’ produces power cords, wiring, cable harness, and plastic coated wires at its facility. The plant can turn out 23.4 million units in capacity each year.

Also, C&S Apparel Manufacturing Inc., which has a manufacturing plant in Sto. Tomas, Bulacan, has applied with the BOI as new export producer of garments on a nonpioneer status, the BOI said.

The plant has the capacity to produce 1.75 million children’s undergarments a year.

Both firms are seeking perks under the Export Activities 2013 IPP, which remains in effect as the government has yet to issue and approve the 2014 IPP.

Should the BOI approve the application of the two export firms, they would be entitled to fiscal and nonfiscal incentives, as provided under the 2013 IPP, to enable them to be more competitive.

BOI-registered enterprises may be exempt from the payment of income taxes for four years from the scheduled start of commercial operations, government data showed.

Other incentives include exemption from taxes and duties on imported spare parts; exemption from wharfage dues and export tax, duty, import fees for enterprises registered under the Investment Priorities Plan (IPP); tax credits; and additional deductions under labor expenses.

The Department of Trade and Industry is expected to submit to Malacañang this month the 2014 IPP. It will recommend the eligibility of seven sectors for incentives over the next three years. These are: Manufacturing; agribusiness and fishery; services; economic and low-cost housing; energy; public infrastructure and logistics; and public private partnership projects.