Dads Reviewing Proposed Investment Incentives Code

THE proposal to revise the city’s Investment Incentive Law is now being studied by the 18th City Council headed by Vice Mayor Raineir Joaquin V. Uy, through the City Council committee on ways and means chaired by Councilor George S. Goking.

During the meeting last week, Local Economic and Investment Promotions Officer Eileen San Juan said a review of the 2002 Investment Incentive Ordinance was already proposed in 2014. However, the draft was held in abeyance.

It was learned that this year, the draft underwent another review in consultation with the City Planning and Development Office (CPDO), City Assessor and the City Treasurer.

SALIENT FEATURES

Based on the 2002 Investment Incentive Code, for a period of not more than six years starting from the date of approval of their application, registered investors are entitled to exemptions from gross sales or receipts earned during the preceding year.

From the first year to the third year, the exemption is 100-percent. On the fourth year it is 75percent, 50-percent on the fifth year and 25-percent on the sixth year.

San Juan informed the committee that in the proposed amendment, businesses will be entitled to fiscal incentives for only three to four years, wherein they will be granted a 100-percent exemption from payment of gross sales or receipts.

The proposed incentive ordinance also grants exemption from Real Property Tax on equipment and land improvements for basic tax only.

ADVISORY BOARD

The proposed amendatory ordinance provides the creation of an Investment Advisory Board chaired by the city mayor to manage and supervise the investments program and approve the registration of eligible projects.

At present, the Investment Evaluation Committee only recommends and evaluates applications for investment incentives.

Under the proposed legislation, local investment priority areas approved by the Investments Advisory Board can benefit from these fiscal incentives.

Councilor Goking said the proposed amendments will be thoroughly reviewed by the legislative body.