A range of financial measures and incentives under Bayanihan 2 Act are now available to manufacturers in the Philippines, the Board of Investments said Friday.
Under the law, manufacturers can carry over any operating loss from financial year 2020/2021 as a tax deduction from gross income over the next five taxable years.
“We know that COVID-19 is still having a significant impact on the operations of manufacturers across the Philippines, and we at BOI are doing all we can to help them,” said Trade Undersecretary and BOI managing head Ceferino Rodolfo.
Many qualified manufacturers will be exempt from business taxes, import duties and other fees on a range of products, Rodolfo said.
Exemptions include production of medical equipment and COVID-19 related items, such as personal protective equipment and raw materials.
The same relief measures will also apply to the production of equipment for waste management, including waste segregation, storage, collection, sorting, treatment and disposal services.
The BOI urged manufacturers and other large businesses to take advantage of the provisions.
President Rodrigo Duterte signed Republic Act No. 11494, or the Bayanihan to Recover as One Act into law last month, allocating P165.5 billion to fund the government’s coronavirus response and economic recovery efforts.
The law allocated P3 billion for the provision of personal protective equipment suits, face masks, shoe covers, face shields and goggles to public and private COVID-19 hospitals.
It also supports investments in health and education and the infusion of capital in Land Bank of the Philippines and Development Bank of the Philippines.