The Board of Investments (BOI) reported a 25-percent increase in investment pledges as of August, bringing the total to more than P760 billion, although this growth was due largely to a big ticket project that got registered for tax breaks back in June. BOI Managing Head and Trade Undersecretary Ceferino Rodolfo said in an online press conference with economic managers on Thursday that pledges grew by 25 percent from January to August this year compared to the same period in 2019.
Although he did not provide absolute figures, the BOI registered P609 billion in the comparative period in 2019. A 25-percent growth would bring the latest figure to around P761 billion. The BOI has not yet responded to requests for additional information as of press time. “The growth of our investment [pledges] from January to August of this year is actually 25 percent compared to [the] same period of last year because groups continue to invest in medium- and long-term investment opportunities such as in infrastructure,” Rodolfo said.
Amid an economy in recession, the BOI surpassed the P600-billion mark back in June, when it registered San Miguel Corp.’s (SMC) P530.8-billion airport project in Bulacan called Airport City.
This investment alone is already 70 percent of the current pledges.
Now registered with BOI, the Airport City will get tax breaks such as income tax holidays. SMC said the project will cost a total of P735 billion.
There is a separate move by lawmakers to give SMC a franchise to build and operate the international airport, which would exempt the firm from all direct and indirect taxes during a 10-year construction period.