P11.973-B in new capital okayed in first six months

THE DAVAO City Investment Incentive Board (DCIIB) approved about P11.973 billion worth of investments as of the first six months of the year, 11 times larger than what was approved during the period last year.

 In a data released by the Davao City Investment Promotion Center (DCIPC), among the new investments that were approved included the Apo Agua’s bulk water facility, Davao South Feedmill Corp.’s aquatic feed mill project and Apo Highlands’ socialized housing project.

 The bulk water facility alone amounted to P10 billion.

 The amount of investments approved during the first six months this year, which eventually resulted in the granting of fiscal incentives, was about 11 times the amount approved during the same period last year at about P1.02 billion.

 With DCIIB’s approval, the companies are granted with fiscal incentives like three-year business tax holiday and two-year real estate tax holiday. It will be entitled with five-year business tax holiday and five-year real property tax holiday if its project falls in a preferred district.

 The Investment Incentive Code cites that the preferred districts are Calinan, Baguio, Marilog and Paquibato, where setting up of projects are encouraged.

 The city government is granting incentives if the project are agri-business, tourism and recreation facilities, light manufacturing assembly, property development, health and wellness, educational and sports facilities, environment protection and green projects, information and communication technology, energy projects, transportation and infrastructure and public-private partnership projects.

 Lemuel G. Ortonio, officer-in-charge of DCIPC, said the DCIIB has already granted fiscal incentives to 235 firms since 1995. “”Majority of the grantees are agribusiness, tourism facilities and property development,” he said.

 This year, he said DCIIB was able to approve the project of Apo Highlands in Feb. while the projects of Apo Agua and Davao South Feedmill Corp. were okayed last May. Apo Highlands’ project, for instance, is in Catalunan Grande, covering 1,200 housing units.

 Apo Agua’s project is in Brgy. Gumalang, Baguio District while Davao South Feedmill Corp.’s project is in Brgy. Bunawan, Bunawan District.

 The period for tax breaks, meanwhile, will soon be amended as the city’s Investment Incentive Code would be up for review. The review will be in partnership with PricewaterhouseCoopers, a multinational audit, assurance, consulting and tax services firm.

 Ortonio said the period would depend if there is a need to shorten the years or lengthen the years of providing fiscal incentives. He said they would also look into the proposal of Councilor Danilo C. Dayanghirang to shorten the period so that the city would continuously reap income from the taxes.

 “Though as much as possible, we want to maintain or improve it. It helps because fiscal incentives attract investments,” Ortonio said.

Posted in Business