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Gov't grants tax breaks to Mindanao-based cement project

Ramon Royandoyan - Philstar.com
Gov't grants tax breaks to Mindanao-based cement project
The FIRB yesterday announced the grant of income tax holiday (ITH), enhanced deductions, as well as duty free importations, for the three investment activities to be located in the regions.
STAR / File

MANILA, Philippines — The Fiscal Incentives Review Board (FIRB) awarded tax incentives to a proposed P10-billion cement manufacturing project that seeks to help meet growing infrastructure needs in Mindanao.

In a statement on Monday, the FIRB said that the Davao del Sur-based project is expected to generate 50.4 million cement bags per year. The incentives include a two-year income tax holiday, then five years of "enhanced" deductions, and duty exemptions on its imports of raw materials, equipment, and spare parts needed for the project.

The project is set to begin commercial operations by July this year in Sta. Cruz, Davao del Sur.

In granting the incentives, the FIRB said the projected direct and indirect benefits of the project outweighs its estimated costs, including possible lost revenues as a result of these tax incentives.

Before this grant, the FIRB awarded tax breaks to two cement plants last year, wherein one of those proposed projects, based in Batangas were estimated to have cost P24.9 billion.

Trade secretary and FIRB co-chair Ramon Lopez said in a statement that the tax incentives will “help achieve the country’s goal of reducing dependence on cement imports and stabilizing the price and supply of the product, on top of the economic benefits of more jobs and business activity generated by the project.”

CEMENT

PHILIPPINE ECONOMY

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