The Philippine government wants mining investors to undertake their mineral processing in the country to maximize benefits from the industry such as job opportunities for locals.
Maria Rosario Dominguez, OIC-Director of the Domestic Investments Promotion Service-Board of Investment (DIPS-BOI), told local businessmen during a Domestic Roadshow for Stakeholders here that the government wants to encourage the local processing of minerals like what Coral Bay Nickel Corporation (CBNC) is doing in Palawan.
“Kung mag e-extract ka dapat dito mo sya e-process kasi ganoong mga klaseng mining activities ang gusto natin na kailangan ang processing nila ay nandito,” she said.
She said the CBNC’s plant in Barangay Rio Tuba, Bataraza, produces nickel and cobalt sulfide from low-grade nickel ores from Rio Tuba Nickel Mining Corporation (RTNMC).
“Katulad na lang ng produkto na pina-process ng Coral Bay, dito ang kanilang processing,” she added.
Under Executive Order No. 226, known as the Omnibus Investment Code of 1987, the BOI is mandated to come up with a list of preferred areas of activities called Investments Priorities Plan (IPP).
“Sa Investment Priorities Plan, makikita natin ang mga priority investment areas na pinu-push ng government,” she said.
Dominguez said the BOI is offering incentives to agribusiness, fishery, forestry, infrastructure and logistics, including Local Government Unit-Public Private Partnership (LPPP) projects, export activities, environment and climate change related special laws, such as renewable energy, tourism, industrial tree plantation, marketing and distribution of petroleum products, and rehabilitation and self-development of person with disabilities among others.
The government is also giving incentives to investors engaged in businesses considered as “innovation drivers,” including those into research and development activities, clinical trials including drug trials, centers of excellence for academic and medical facilities, innovation centers, business incubation hubs, fabrication laboratories, shared service facility for micro and small enterprises (MSE), commercialization of new and emerging technologies and products of the Department of Science and Technology (DOST) or government-funded research and development.
“There is a locational restriction for Information Technology and Business Process Management (IT-BPM) sector in Metro Manila by 2020,” she said.
She explained this means the IT-BPM that will locate in Manila will not be covered by the BOI incentives.
The IT-BPM is one of the best-performing and employment generating activities in the past years, particularly the voice-based services, non-voice and complex process outsourcing, she said.
Fiscal incentives would include income tax holidays, additional deduction for labor expense, duty-free importation of capital equipment, spare parts and accessories, tax and duty exemption on importation of breeding stocks and genetic materials, tax and duty-free importation of spare parts and supplies, exemption from wharf dues, export tax, impost and dues.
Non-fiscal incentives on the other hand includes unrestricted use of consigned equipment, employment of foreign nationals, simplification of custom procedures, and access to bonded manufacturing warehouse.
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