MANILA, Philippines - The government announced they will continue to give tax incentives to the logistics industry because of the crucial role it plays in all functions of companies.
The Department of Trade and Industry (DTI) has been receiving opposition from the Department of Finance (DOF) because of the fiscal incentives it offers to firms.
In spite of this, Trade Undersecretary Elmer C. Hernandez said the government, through the DTI, will continue to support the logistics industry by consistently including them in the preferred list of economic activities under the Investment Priorities Plan (IPP).
Yearly, businessmen who would like to invest in logistics may apply for tax breaks.
“The role of the links along the supply and value chains could not be undermined especially at these economically trying times when businesses are reforming, consolidating and streamlining,” Hernandez said.
He called logistics as the strategic lynchpin that binds virtually all functions within any company.
The undersecretary explained that logistics plays a crucial role in influencing product development, manufacturing cycles, marketing, distribution, financial management and international sales.
“Given the apparent global slowdown, logistics and supply chain service providers could buck the odds and even grow in the coming years because companies from abroad continue to rationalize their operations or relocate them altogether and move to cost-effective locations such as ours,” Hernandez noted.
Currently, he said, the focus of the Philippine government, and the SBMA Port Authority is to develop the Clark and Subic Corridor to the point of being considered the best and most competitive logistics and international service center in Southeast Asia.
Hernandez said this will develop and enhance synergy between airport and industrial development with raw goods and finished products efficiently transferred through the supply chain.