D&L Premium Foods Corp. (DLPF) and Natura Aeropack Corporation (NAC), subsidiaries of D&L Industries, secured an additional two-year Income Tax Holiday (ITH) for their Batangas plant.
Originally approved for four years and set to end on June 30, 2027, the ITH will now run for a total of six years, from July 1, 2023, to June 30, 2029, D&L said Friday in a disclosure to the stock exchange.
The approval was granted by the Philippine Economic Zone Authority (PEZA).
Pioneer status is awarded to companies introducing new or innovative technologies and industries considered important to national development. These projects typically involve large investments and offer economic benefits such as job creation and technology transfer.
The approval was based on the companies’ use of advanced automation and sustainable manufacturing technologies at their Tanauan, Batangas, facility. Specifically, they are using a Distributed Control System (DCS) that automates and centralizes production, allowing real-time monitoring, safer operations, and minimal human intervention.
According to D&L, this is the first time such technology is being used locally in the production of specialty fats and oils, specialty ingredients, coconut oil fractions, and coconut-based surfactants. The system allows the companies to produce high-quality, consistent, and sustainable products for both domestic and export markets.
Once the ITH ends in 2029, DLPF and NAC will continue to enjoy a 5 percent tax on gross income until Dec. 31, 2034, in line with the CREATE MORE Act, which covers businesses in special economic zones.
“This approval underscores our commitment to innovation, advanced manufacturing technology, and world-class automation systems. It reflects our long-term vision of positioning the Philippines as a hub for sustainable, high-value manufacturing that is globally competitive,” said D&L president and chief executive Alvin Lao.
D&L opened the P10 billion Batangas plant in 2024.
