The government is inclined to grant incentives to potential investments related to advancing the coronavirus response efforts as well as the Balik Probinsya program in the country.
The two categories are included in the 2020 Investment Priorities Plan (IPP), a list of preferred business activities approved by President Duterte.
“Upon effectivity of the IPP, all government agencies and entities are enjoined to issue the necessary regulations to ensure its implementation in a synchronized and integrated manner,” Memorandum Order No. 50 read.
“In the grant of incentives, it is understood that the Board of Investments shall ensure the attainment of and consistency with the State policies under EO No. 226 and the national goals under Republic Act No. 11469 or the ‘Bayanihan to Heal as One Act,’ and RA No. 11494 or the ‘Bayanihan to Recover as One Act,’” it added.
The investment priorities plan, which included preferred economic activities entitled to incentives such as income tax holiday, was submitted to the Palace early this year.
In MO 50, the President has included COVID-related projects such as manufacturing of medicines, medical equipment, personal protective equipment as well as hospitals, testing and quarantine facilities in the list of 12 preferred activities for investments.
Investments in job-generating programs outside congested urban areas such as the Balik Probinsya Program are also preferred by the government.
The MO stated the Board of Investments (BOI) may provide “up to six years of income tax holiday to qualified activities” under these two categories once it is determined that it would promote public health and safety as well as address impact on livelihood and economic activities.
Other preferred activities for investment are manufacturing including agri-processing; agriculture, fishery and forestry; strategic services such as telecommunications and creative industries/knowledge-based services; healthcare and disaster risk reduction management services, mass housing; infrastructure and logistics; innovation drivers; inclusive business models; environment and climate change-related projects; and energy.
Along deemed priorities are export activities, activities based on special laws that grant incentives such mining, renewable energy, and tourism.
The IPP also included the preferred business activities in the Bangsamoro Autonomous Region in Muslim Mindanao.
Among the investment areas are export, agriculture and fishery, basic industries, infrastructure and services, industrial service facilities, engineering industries, logistics, BIMP-EAGA related investment enterprises, tourism, health and education services, Halal industry, and energy.