Motor Vehicles, Tourism Restored among Preferred Industries in 2012 IPP
MANILA, Philippines - Motor vehicles and tourism sectors have been restored on its preferred economic activity status under the 2011 Investments Priorities Plan (IPP), which Malacanang finally approved midway into the year, entitling a package of tax and fiscal incentives to a total of 13 priority sectors.
Board of Investments Managing Head Cristino L. Panlilio said that President Aquino signed Memorandum Order No. 20, which was published in the Manila Bulletin on Monday, July 11. It will take effect 15 days from its publication.
Panlilio said that since the MO has only specified 2011 IPP, the BoI would just have to ask Malacanang to extend it for another year.
The final list in the new IPP consists of 13 preferred activities, namely: Agriculture/agribusinesss and fishery, creative industries/knowledge-based services, shipbuilding, mass housing, energy, infrastructure, research and development, green projects, motor vehicles, tourism, strategic projects, public-private partnership projects, and disaster prevention, mitigation and recovery projects.
Notably, tourism and motor vehicles were the two latest additions in the new IPP, which originally identified 11 priority sectors only.
Tourism was supposed to be listed in the Mandatory List because of the passage of the Tourism Act, which created the TIEZA (Tourism Infrastructure and Enterprise Zone Authority) with the mandate to grant tax perks to developers of tourism enterprise zones (TEZ).
In listing tourism in this year's IPP, the BoI said that projects to be registered with the agency only covers enterprises that are outside of the TEZ like tourist transport services, establishment and operation of accommodation facilities such as hotels, resorts, bed and breakfast facilities, convention and exhibition facilities, adventure and ecotourism facilities, sports and recreational facilities, theme parks, heath and wellness, and development of retirement villages. …