Duterte’s 1-year fiscal perks not enough: BOI says firms need zero duty for at least 5 years
MANILA — The Board of Investments (BOI) wants to extend from one year to five years the period for availing of incentives for capital equipment, the original validity period for giving these perks since the Omnibus Investments Code of 1987 or Executive Order (EO) No. 226 took effect.
President Rodrigo Duterte signed last April 28 the EO No. 22, which only provides one-year period of zero-duty on capital equipment, spare parts, and accessories importation by BOI-registered firms.
It was the first time that the government only gives a one-year period for capital equipment incentives, the BOI Investment Policy and Planning Service (IPPS) said.
The BOI pushed for the extension the capital equipment incentives with the expiry of EO 22 on May 18, 2018.
Upon expiration of the EO, capital equipment, spare parts, and accessories that will be imported by BOI-registered firms will be slapped with their respective tariffs.
The BOI said the zero tariff on capital equipment, spare parts, and accessories remained a vital fiscal incentive to attract foreign investments as well as enhancing the industrial competitiveness of the country, which is in line with the Philippine Development Plan 2017-2022.
The BOI presented its position during a public hearing at the Tariff Commission early this month.
It will also present the proposed extension of capital equipment incentives to the Techincal Committee on Tariff and Related Matters. (PNA)