Just what happened to the proposed inclusion of the entertainment sector in the Investment Priorities Plan (IPP)? It was nipped in the bud by the National Economic and Development Board (NEDA).
A draft of the 2001 IPP showed the entertainment sector "television, motion picture, to include documentary films and musical recording" would be deleted from the list.
An IPP is an annual list of preferred projects eligible for government incentives.
A source said the removal of the entertainment sector from this year's IPP followed after the order of President Gloria Macapagal-Arroyo for the review committee Board of Investments (BOI) and NEDA to trim down the list and limit it to projects that really need incentives.
According to the source, the review committee found out that the entertainment sector does not really need incentives but financing.
In addition, a movie or a related entertainment project is not barred from availing of government incentives as long as they export part of their production.
The non-inclusion of the entertainment sector in this year's IPP also followed after the recent Malacanang decision to reduce by half the 30 percent amusement tax to encourage companies to produce quality films as well as to run after video pirates.
Once listed in the IPP, a registered firm is entitled to income tax holiday incentives for as long as six years. The IPP, which is also being made as basis for the registration of projects under the Philippine Export Processing Authority (PEZA). …