UEM Mara seeks extension of its tax incentives

UEM Mara Philippine Corp. (UMPC) is seeking an extension from the Board of Investments (BOI) of its income tax holiday (ITH) incentive.

UEM, in its request to the BOI for extension of its ITH, explained that although it started operation of the Manila-Cavite Toll Expressway in 2000, the Toll Regulatory Board (TRB) did not grant its request for a toll hike until 2002.

Thus, UMPC was not able to maximize its ITH incentive. But according to BOI managing head Elmer C. Hernandez, the BOI’s regulations does not allow the grant of any extension.

Thus, on that basis, Hernandez said, the BOI is likely to deny UMPC’s request for extension of its ITH incentive.

UEM Mara is a wholly owned subsidiary of the Coastal Road Corp.

UEM Mara was acquired by CDC from United Engineers (Malaysia) Bhd. after UEM encountered problems in the construction of the Manila-Cavite Coastal Tollway in the latter part of the 1990s.

A European dredging company, Jan de Nul, in February this year had expressed interest in acquiring 30 percent of UMPC.

UMPC last year obtained a $117 million loan from the International Finance Corp. (IFC) to extend the six-kilometer Manila-Cavite coastal by another 11.3 kilometers up to Noveleta, Cavite.