The Fiscal Incentives Review Board (FIRB) has approved the grant of tax incentives for a mass housing project and two cement manufacturing plants all located outside Metro Manila and worth P29.4 billion combined.
Chaired by Finance Secretary Carlos Dominguez III, the FIRB approved during its third meeting last August 2 the tax incentives for a mass housing project in Iloilo with an estimated project cost of P1.4 billion; a proposed cement plant in Porac, Pampanga, which will cost about P3.1 billion; and another cement plant in Calatagan, Batangas which will cost around P24.9 billion.
The FIRB approved the grant of a 4-year income tax holiday (ITH) plus duty exemptions on importations of capital equipment and raw materials to the Iloilo housing project.
The proposed Pampanga cement manufacturing plant was given a 2-year ITH, five years of enhanced deductions and duty-free exemptions on importations, while the one to be built in Batangas, which will include the installation of clinkering facilities, was granted a 6-year ITH, along with 5 years of enhanced deductions and duty exemptions on importations.
Socioeconomic Planning Secretary Karl Kendrick Chua underscored the importance of introducing new technologies in cement manufacturing to lower costs and increase the competitiveness of local production when the Board approved these two projects.
Trade and Industry Secretary Ramon Lopez said the grant of tax incentives to the Iloilo project encourages the private sector to help the government fill the gap in affordable or low-cost housing for Filipinos.
Finance Assistant Secretary and FIRB Secretariat Head Juvy Danofrata said the Iloilo project covers over 3,ooo units classified as “economic” and “low-cost” housing, and is intended to address 1 percent of the housing backlog in Western Visayas, based on data from the Philippine Statistics Authority (PSA).
