MASS housing projects outside Metro Manila may be given tax incentives, Trade and Industry Secretary Ramon Lopez said.
“Housing beyond P2 million is not exempted from taxation.Incentives can only be provided for those below P2 million and outside Metro Manila,” Lopez told reporters late Monday.
He said housing projects outside Metro Manila, such as medium-rise in cities, low-cost and mass housing for lease are qualified for these tax incentives.
In the past, there were no incentives in many places such as Boracay, but Lopez said these incentives are now open to all.
As Lopez presented the draft Investment Priorities Plan (IPP) for 2017, he pointed out that they have made some changes to the previous IPP.
The draft includes the following: drug rehabilitation, local government’s plan, small PPPs (public-private partnership) program, environment and climate change related projects, developing the guidelines of inclusive business and lifting geographical restrictions such as those on tourism accommodation facilities.
The 2014-2016 IPP did not set geographical restrictions on housing projects but placed a cap of P450,000 to P3 million on the selling price per unit for a housing project to get a three-year income tax holiday.
Earlier, the Board of Investments (BOI) upgraded the 2017 Investment Priorities Plan (IPP) to highlight nine preferred activities, including the construction of drug rehabilitation centers, to reflect the Duterte administration’s anti-drug campaign.
The preferred activities eligible for incentives over the next three years include all manufacturing activities such as agro-processing, agriculture and fishery, strategic services, healthcare services including drug rehabilitation centers, mass housing, infrastructure and logistics, innovation drivers (research and development activities), inclusive business models, and environment or climate change-related projects.
The BOI, an attached office of the DTI, is the government’s main investment arm that registers projects qualified for fiscal and non-fiscal incentives such as tax holidays, duty-free importation of capital equipment and employment of foreigners.
The proposed IPP will have a three-pronged goal of modernizing the Philippine economy through enhanced incentives packages, generation of massive levels of decent jobs, and solutions to societal issues on employment and housing.