President Rodrigo Duterte issued Executive Order No. 22 extending by another year the duty-free incentives enjoyed by companies listed with the Board of Investments in importing capital equipment.
The order signed on April 28, 2017 is expected to attract more innovation-led and technology-driven investment projects, according to the BoI. It replaced EO 70 that expired on May 9, 2017.
Under the EO, qualified BoI-registered business enterprises are exempt from paying duties when they acquire capital equipment from other countries classified under the specific chapters of the Tariff and Customs Code of the Philippines.
The duty exemption, however, will only be granted upon the issuance by BoI of a certificate of authority to the importing company.
The privilege strictly applies to equipment not manufactured locally or of insufficient supply domestically and for the exclusive use of the registered firm, BoI said.
Trade Undersecretary and BoI managing head Ceferino Rodolfo said the grant of the capital equipment incentive remained an important measure to further promote and drive more high-value, impactful and socially-relevant investment projects into the country.
Rodolfo said this would be most helpful to companies that were just in their start-up years and those that were expanding or modernizing their facilities.
“The measure also augurs well with the agency’s 2017 Investment Priorities Plan which encourages more innovation-driven and job-generating investment projects that will eventually lead us to modernize the Philippine economy,” said Rodolfo.
The 2017 IPP brings significant additions and changes, aligned with the President’s zero + 10-point socio economic agenda, the aspirations embodied in AmBisyonNatin 2040 and the Philippine Development Plan 2017-2022.
Apart from innovation-driven projects, the new IPP also includes broad changes including further emphasis on inclusive business for agribusiness and tourism; broadened coverage of manufacturing; information technology and IT-enabled services for the domestic market and telecommunications services for new market players.
The IPP also covers environment and climate change-related projects; LGU-initiated PPP projects; drug rehabilitation centers; state-of-the-art engineering, procurement and construction services; and the lifting of geographical restrictions for most agriculture and tourist accommodation facilities.