The Board of Investments (BOI) is considering 16 sectors in a list of new business activities that will be eligible for incentives under the latest iteration of the government’s tax reform program.
The sectors under consideration are: electronics; auto and auto parts; aerospace parts and maintenance, repair, and operating supplies; tool and die; information technology and business process management and creatives; chemicals; shipbuilding and ship repair; furniture, garments and textile; agribusiness; parts components and inclusive business; efficiency seeking or competing in highly contestable markets; sectors in transition; innovation, research and development; social services; climate change; transport logistics and construction.
This is according to a presentation shown by Trade Assistant Secretary for Industry Development Rafaelita Aldaba during the Manufacturing Summit last week.
Once finalized, these sectors would be part of the Strategic Investment Priority Plan (SIPP), which essentially spells out the business activities eligible for tax perks under the second tax package, or the Tax Reform for Attracting Better and High-quality Opportunities (Trabaho) bill.
The BOI already has its Investment Priority Plan (IPP), a three-year program which took effect sometime last year. The IPP also lists businesses that could receive tax perks such as income tax holidays.
The difference, in this case, is that the SIPP will apply to all investment promotion agencies, such as the Philippine Economic Zone Authority (Peza).
“So far, that’s it [list]. But we will still fine-tune that because it’s still broad,” said BOI Chair and Trade Secretary Ramon Lopez.