The city government of Puerto Princesa has rolled out a generous tax incentive package for all types of businesses in the newly designated Tourism Mile section of Rizal Avenue, including a 5-year tax holiday.
The objective of the incentive package, enacted through a recent ordinance, is to spur economic activities in the area and boost tourism there.
The city government has designated as Tourism Mile the stretch of Rizal Avenue from the Provincial Capitol to the old airport terminal in Barangay Bancao-Bancao
Lorraine M. Banzuelo, head of the Local Economic and Investment Promotions Office (LEIPO), said the incentive includes a 5-year exemption from the payment of business taxes and real property tax on land directly and exclusively used in the business and improvements in the area. This pertains to buildings and structures essential to the operation of business constructed on Tourism Mile.
The 100 percent tax holiday for five years and the succeeding years will be implemented on a graduated scheme based on the provisions of the approved city ordinance.
Aside from the businesses that will benefit from the incentives, property owners whose land are being leased by an investor will also enjoy incentive.
Among the preferred businesses within the tourism mile are restaurants, karaoke bars, refreshment parlors with bands or live music, internet café, convenience stores, money changer, boutique, beauty salon, massage parlors and spa, swimming pool, comedy events and bars, winery, dance studio and fitness centers, pharmaceutical, theater and cinema, games and amusement businesses.
The tax incentive or the five-year tax holiday can be availed by the investors regardless of the amount of investment that will be situated within the tourism mile. The location is also preferred for nighttime economy.
“Sa dating ordinansa ay merong nakalagay na amount na ang maka-avail ay at least P3 million, ngayon dito sa tourism mile ay wala syang amount of capitalization. Kahit mga maliliit na businesses, pwedeng maka avail sa tax incentives,” Banzuelo said.