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Business

Uy shipping firm gets tax incentives

Elijah Felice Rosales - The Philippine Star

MANILA, Philippines — A shipping firm owned by Dennis Uy has received nine years of tax cuts and 11 years of duty exemption from the government.

The Cabinet-level Fiscal Incentives Review Board (FIRB) yesterday announced that it approved the grant of fiscal incentives for Cebu-based Trans-Asia Shipping Lines Inc.

Trans-Asia, managed by Uy-owned Chelsea Logistics Corp., will be incentivized for its purchase of a shipping vessel specializing in roll-on roll-off operations worth P1.5 billion.

According to the FIRB, Trans-Asia will get four years of income tax holiday for the project. Also, it will enjoy 11 years of duty exemption on certain importations, including five years of enhanced deductions when the tax break expires.

Finance Secretary and FIRB chairman Carlos Dominguez  said the board decided to provide the project with incentives as part of the government policy to upgrade the transportation sector by, among others, improving industry competition.

Trade Secretary and FIRB co-chairman Ramon Lopez also said that the government would benefit from Trans-Asia’s latest purchase as it would raise revenues even after the tax perks lapse, a factor which the FIRB considers in approving any incentive.

Trade Undersecretary Ceferino Rodolfo said the benefits of incentivizing the project outweighs its costs. He said  the enhanced access to sea transport would widen trading activities between Central Visayas and Northern Mindanao by linking their suppliers and buyers.

Instituted by the Corporate Recovery and Tax Incentives for Enterprises Act, the FIRB is tasked to approve tax perks for new projects worth P1 billion and above. Last year the board authorized the grant of incentives for five big-ticket investments in housing and manufacturing amounting to P119.5 billion.

DENNIS UY

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