Integrate small firms in value chain to get perks: DTI
“Inclusive businesses” (IBs) can qualify for fiscal and non-fiscal incentives with the Board of Investments (BOI) as they form part of the Duterte administration’s Investment Priorities Plan (IPP) 2017-2019.
The Department of Trade and Industry (DTI) said IBs are projects of medium and large companies that integrate micro and small enterprises in their value chain.
Under the General Policies and Specific Guidelines of the IPP, the DTI said IB Projects in the agribusiness and tourism sec- tors may qualify for BOI investment incentives on a pioneer status and be eligible for an income tax holiday of five years.
“IBs are innovative models where companies engage the poor and low-income communities as partners, customers, suppliers, and employees in their supply chains not out of charity, but because it makes good business sense,” said the trade agency in a statement yesterday, adding the integration makes for better business with diversified supply and distribution systems.
The BOI has created an IB Unit Office which would be responsible for evaluating investment projects applying for registration with potential IB models.
“The inclusion of IB in the new IPP is our proactive response to address the administration’s 10-point socioeconomic agenda, particularly in promoting rural and value chain development, by expanding economic opportunities and providing incentives to qualified business activities based on actual results of MSEs’ (micro and small enterprises) involvement in the global value chain,” said Trade Assistant Sec- retary Fe Agoncillo-Reyes.
The BOI said the DTI-led Negosyo Centers will play a significant role in the successful implementation of IB projects. Business councilors in the Negosyo Centers will serve as frontliners in en- gaging micro and small enterprises on the possible procurement requirements of big companies.
In Cebu, there are 11 Negosyo Centers, and 13 more are slated to open within the year, 80 percent of them in northern Cebu. /