BOI wants to include inclusive business model in IPP

The Board of Investments (BOI) is looking at making the inclusive business model part of the Investment Priorities Plan (IPP) to be released this year.

“We’re looking at institutionalizing means to promote the inclusive business model so the BOI is looking at the possibility of including that as one of the conditions in granting incentives to businesses,” BOI managing head Adrian Cristobal Jr. told reporters in a chance interview.

The inclusive business model involves integrating low income groups as producers, employees or distributors to the business to make profit.

“Inclusive business model seems to be applicable more to that sector, food processing. However, if it is applicable to others, we still have to study it,” Cristobal said.

The IPP, released every year, lists activities which can qualify for incentives from the government.

Cristobal said the BOI intends to release the IPP for 2014 within this quarter.

“We’ve already done consultations through the road mapping exercises but for the IPP draft, we expect to start end of January,” he said.

Earlier, he said the BOI may trim the list of activities in the IPP which can qualify for fiscal and non-fiscal perks to streamline the country’s investment regime.

Under the 2013 IPP, the following were identified as preferred activities: agriculture or agribusiness and fishery; creative industries or knowledge-based services; shipbuilding; mass housing; iron and steel; energy; infrastructure; research and development; green projects; motor vehicles; strategic projects; hospital or medical services; and disaster prevention, mitigation and recovery projects.

The 2013 IPP likewise has a mandatory list covering activities which must be given perks as provided under existing laws such as industrial tree plantation; exploration, mining, quarrying, and processing of minerals; publication or printing of books or textbooks; refining, storage, marketing and distribution of petroleum products; ecological solid waste management; clean water projects; rehabilitation, selfdevelopment and self-reliance of persons with disability; renewable energy; and tourism.

Aside from the lists of preferred activities and mandatory activities, the IPP covers export activities as well as those identified as priorities by the Regional Board of Investments of the Autonomous Region in Muslim Mindanao (RBOI-ARMM).