Govt extends tax-free import perks for investors

MALACAÑANG has released an executive order ( EO) extending investors’ duty-free incentive for imported machinery and equipment, but only for a year or until Congress passes a law making it permanent.

Executive Order 22, signed by President Rodrigo Duterte last April 28, replaces EO 70 that expired last May 9. EO 70 granted the incentives to investors registered with the Board of Investments (BOI) for 2012.

Under the EO, qualified BOIregistered business enterprises will be exempted from paying duties when they acquire capital equipment from other countries under Customs Code of the Philippines.

“Considering that importation of capital equipment is one of the major cost burdens of business enterprises in their start-up operations and expansion, there is a need to extend the zero duty on importation on capital equipment, spare parts, and accessories currently being enjoyed by BOI-registered enterprises,” the EO states.

It acknowledged that the grant of duty-free importation of capital equipment “remains to be an im investments into the Philippines considering the global competition for foreign direct investments.” only be granted upon the issuance - privilege, however, strictly applies

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