By Czeriza Valencia (The Philippine Star) Updated April 19, 2012 12:00 AM
MANILA, Philippines - Under the 2012 Investment Priorities Plan, which will be released this month, power projects that are already granted a guarantee of rate return by the Energy Regulatory Commission will no longer be granted income tax holiday by the Board of Investments (BOI) to prevent “double dipping” of incentives.
“The power sector is an important sector. It’s an industry that we want to have more capacity because we still lack low power cost . But there should be no double-dipping of incentives. If you already get a guaranteed rate from the ERC then you have already gotten your targeted rate. Then you should no longer be entitled to an income tax holiday,” said Trade Secretary Gregory Domingo.
Domingo said the implementing rules and regulations of the 2012 IPP would contain the guidelines in providing incentives to the power sector.
In the 2011 IPP, the following industries have been identified as priority areas: agriculture/agribusiness and fishery; creative industries; shipbuilding, mass housing; infrastructure; Public-Private Partnership projects; research and development; green projects; motor vehicles; strategic projects, and disaster prevention, mitigation and recovery projects.
Incentives for renewable energy investments were retained in the mandatory list.
Business sectors listed in the IPP are entitled to tax and fiscal incentives, particularly income tax holidays. Projects are approved based on net value added, job generation capacity and multiplier effect.
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