Petronas Energy seeks tax perks

Petronas Energy Philippines Inc. has applied for registration with the Board of Investments (BoI) for possible tax holidays for an import and storage facility in the province of Cebu.

In an advertisement published Monday, BoI said Petronas Energy sought registration for the construction of a new 2,500-metric ton import terminal and lubricant storage facility located in Naga City, Cebu, under the Oil Deregulation Law (R.A. 8479).

According to the BoI website, there are general provisions for incentives that companies may apply for.

Under these provisions, registered enterprises may qualify for an income tax holiday ranging from 4 to 6 years; tax credit for taxes and duties on raw materials; deduction of labor expenses from taxable incomes; access to bonded manufacturing or trading warehouse schemes; exemption from taxes and duties on imported supplies and spare parts for consigned equipment; and exemption from wharfage dues and any export tax, duty free and impost.

If Petronas Energy’s application is approved, the company may enjoy additional incentives under the Oil Deregulation Law, the BoI said.

Refining, storage, distribution and marketing of petroleum products are part of the mandatory list in the 2011 Investment Priorities Plan (IPP).

The mandatory list covers activities that require their inclusion in the IPP as provided for under existing laws.

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