INCENTIVES FOR DRUG REHAB

Investment Priorities Plan 2017-2019 to include tax holidays for drug rehabilitation projects

COMPANIES that will invest in drug rehabilitation centers may soon be able to avail of tax incentives.

The initiative is part of the Board of Investment’s (BOI) proposed Investment Priorities Plan (IPP) for 2017 to 2019, which will be submitted to the Office of the President within the month for approval.

BOI Governor Oliver B. Butalid said businesses that will venture in drug rehabilitation will be granted an income tax holiday for four years and will enjoy duty-free importation of materials and equipment for the business. If the new IPP is approved by early next year, this

Incentives include income tax holiday for four years; dutyfree importation of materials and equipment needed for the business

will be the first to provide incentives to drug rehabilitation facilities.

“Incentives are there to encourage people to invest in it (drug rehab). Obviously, there is a demand with 800,000 (drug) dependents. People can take into that business model so they can take care of the drug dependents properly,” Butalid told reporters at the sidelines of yesterday’s public consultation for the draft of IPP 2017-2019.

Instead of drug rehabilitation centers, the previous IPP spanning 2014 to 2016 focused on giving incentives to new and expansions of private hospitals, and seven other preferred businesses.

Aside from drug rehabilitation centers, BOI said the draft IPP for 2017 to 2019 listed eight other preferred activities: all manufacturing activities including agri-processing, agriculture and fishery; strategic services; mass housing; infrastructure and logistics including public-private partnership participated by local governent units; innovation services; inclusive business models; and environment or climage change-related projects.

The three-year IPP is a list of priority investment activities geared toward providing fiscal support to inclusive business projects that benefit the mi- cro, small, and medium enterprises (MSMEs). Butalid said he hopes to have it approved by the President early next year.

The IPP 2014-2016 focused on eight preferred activities: manufacturing, agribusiness and fisheries, services, economic and low-cost housing, hospitals, energy, public infrastructure and logistics, and projects under the public-private partnership program.

The draft IPP removed in the preferred list non-renewable energy projects, housing projects with units priced beyond P2 million, and has opted to remove incentives for manufacturing, housing, and business process outsourcing (BPO) projects in Metro Manila.

This Wednesday, the BOI will also hold public consultations in Manila and Davao.