BOI rationalizing tiering system in govt’s investment priority plan
Photo from BOI/FACEBOOK
MANILA, Philippines — The head of the Board of Investments (BOI) on Thursday said they are amending the government’s investment priority plan, rationalizing the tiering system which determines the incentives for businesses registered with them.
Trade undersecretary and Board of Investments (BOI) Managing head Ceferino Rodolfo said that they are finalizing a revised version of the Strategic Investment Promotion Plan which will cover the years 2025 to 2028.
“The projects identified have high impact for job creation, value creation through innovation, grading, moving up the value chain, and providing essential support to sectors critical to industrial development,” Rodolfo told members of the European Chamber of Commerce of the Philippines (ECCP) during the launch of the group’s 202 Doing Business in the Philippines guidebook.
READ: BOI allows foreign-owned higher education schools to get incentives
The BOI official said that they estimate that it will be finished within the first half of the year.
Speaking further about the subject on the sidelines of the event, Rodolfo said they are rationalizing the sectors included in SIPP as well as the tiering system.
“Because based on consultations, there are sectors requesting if they can be classified, categorized into the higher tiers. So, we are looking at where the law is coming from,” Rodolfo told reporters.
“So, we will adjust the tiers, and then second, take a look at the sectors which need more incentives, and those who do not need more incentives,” he added.
The SIPP is a three-tier fiscal incentive plan listing the criteria and the specific activities and location deemed a priority sector by the government.
Incentives are determined whether they are grouped as export-oriented activities or if the business caters to the domestic market.
Incentives are also determined by location, with those in metropolitan areas and locations outside Metro Manila enjoying greater benefits.
The latest version of the SIPP approved by the interagency Fiscal Incentives Review Board (FIRB) offers incentives lasting 24 to 27 years, including a mix of income tax holidays or enhanced deductions, among others.
