THE Fiscal Incentives Review Board (FIRB) has approved tax incentives for a P10-billion cement manufacturing project in Davao del Sur set to supply infrastructure projects in Mindanao, the Department of Finance (DoF) said.
The Oro Cemento Industries Corp. project’s estimated output is 50 million bags of cement each year, the DoF said in a statement on Monday.
The FIRB granted the cement project a two-year income tax holiday, after which it will receive five years of enhanced deductions and duty exemption on capital equipment and raw materials imports.
Commercial operations in Sta. Cruz, Davao del Sur will start in July.
The DoF said the project will employ energy-efficient equipment to improve productivity.
Incentives granted to the project will “help achieve the country’s goal of reducing dependence on cement imports and stabilizing the price and supply of the product, on top of the economic benefits of more jobs and business activity generated by the project,” Trade Secretary and FIRB Co-Chair Ramon M. Lopez said.
The approval of incentives was recommended by the Board of Investments, an investment promotion agency.
The FIRB has asked the Board of Investments to finalize by this month the Strategic Investment Priority Plan (SIPP).
The SIPP determines the priority industries and projects to be given government incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, the law that cuts corporate income tax and rationalizes the tax incentive system.
In the meantime, a transitional list based on the 2020 Investment Priorities Plan is in effect.
Finance Secretary Carlos G. Dominguez III said the publication of the SIPP will help attract foreign investment. — Jenina P. Ibañez