Tax perks set for firms going green

MANILA, Philippines - The Board of Investments (BOI) plans to hand out financial incentives to manufacturing companies that will promote energy efficiency and conservation in their projects.

The BOI said the scheme would be implemented through the Climate Incentives for Manufacturing (CLIMA) program as included in the guidelines of the 2017 Investments Priorities Plan (IPP).

CLIMA is a targeted financial incentives scheme crafted by the BOI under the 2017 IPP guidelines that seeks to promote the “greening” of the country’s manufacturing industry and its sub-sectors.

The BOI said the scheme will cover investment projects involving the manufacture of goods and establishment of energy efficiency-related facilities in which its utilization would significantly lead to efficient use of energy, natural resources or raw materials, minimize pollution, or reduce greenhouse gas emissions.

“Our manufacturing industry is challenged to further strengthen competitiveness by integrating green economic development in its operations, which has now become a global trend. With the CLIMA scheme in place, we provide our local industries a proactive response to such worldwide trend, ensuring their sustainable growth and competitiveness by embedding climate change in our industrial policy,” Trade Assistant Secretary Rafaelita Aldaba said.

Under the scheme, qualified  projects will be granted capital equipment incentives and income tax holiday (ITH).

The BOI said it is currently conducting a project evaluation and incentive availment workshop for various government agencies that will be involved in the implementation of the CLIMA scheme.

The IPP is a list of priority investment activities that may be given incentives.

The 2017 IPP brings significant additions and changes, including further emphasis on innovation-driven and job-generating businesses, inclusive business for agribusiness and tourism, broadened coverage of manufacturing, information technology (IT) and IT-enabled services for the domestic market and telecommunications services for new market players, 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.