ILOILO City – Ilonggos can look forward to more job opportunities following the approval of the ordinance that provides Real Property Tax (RPT) incentives to developers of buildings intended exclusively for Business Process Outsourcing (BPO) operations in Iloilo City.
Championed by its principal author, Councilor Miguel Treñas, the “BPO RPT Incentive Ordinance of Iloilo City” is designed to fuel economic growth by fostering job creation within the metro’s thriving BPO industry.
The ordinance emphasized the need for creating a business-friendly environment to sustain and attract BPO investments, citing the vital role of the industry in the city’s economic growth, particularly in generating employment and driving urban development.
Approved during the Sangguniang Panlungsod’s April 2 regular session, the new measure grants a 100% exemption from RPT payments for developers awaiting accreditation from the Philippine Economic Zone Authority (PEZA). This financial relief aims to accelerate BPO expansion by reducing upfront costs.
Under the newly approved ordinance, developers can avail themselves of the incentive for up to five years or until PEZA accreditation is granted, whichever comes first.
“Granting a real property tax incentive during the pendency of PEZA accreditation would provide much-needed financial relief to developers and encourage the early establishment of BPO operations in the city,” the ordinance stated.
To qualify, developers must provide proof of their PEZA application, along with supporting documents that may be required by the Iloilo City Investment Incentives Board, the City Assessor’s Office, or the City Treasurer’s Office to verify the building’s use.
Expressing support for the ordinance, Councilor Rex Sarabia said the new measure grants relief from surcharge and interests of local tax for the transfer of real property ownership aligning with the estate tax amnesty program under Republic Act 11956.
Similarly, it was also Councilor Treñas who authored an ordinance granting relief on surcharges and interests on local tax in the transfer of real property ownership in the city.
By promoting the construction of dedicated BPO facilities, such as call centers, information technology services, and back-office operations, Iloilo City strengthens its position as a business-friendly destination, thereby creating more jobs for thousands of Ilonggos and contributing to the city’s progress.
Currently, Iloilo City is home to 118 Information Technology and Business Process Management (IT-BPM) companies, providing jobs to 47,200 full-time employees. This marks a significant growth compared to 2014, when there were only 15 firms employing 11,000 workers.
The number of indirect jobs generated by the sector has also surged to 188,800 in 2024, a remarkable increase from 44,000 in 2014, according to data from the Local Economic Development and Investment Promotion (LEDIP) Office.
APPRECIATION STATEMENT
The National ICT Confederation of the Philippines (NICP) – Iloilo Federation for Information Technology Inc., or Iloilo ICT Council, through a statement, extended its sincerest appreciation to the Iloilo City Government for the said ordinance.
It echoed the significance of industry in the growth of the economy in Iloilo City and in building thousands of jobs for the citizens.
“For the sustainability and attraction of many BPM companies to the city, it is very important to ease such companies in breaking into the area. Thus, they will need incentives that will prod the building of offices to be exclusively for BPM use,” the statement read.
They noted that the accreditation with PEZA is already one of the major hurdles that developers need to conquer.
Given the lengthy process and competing priorities, the city is supporting developers by granting RPT exemptions from the time their PEZA application is filed. This initiative, they added, would really help to spur the construction of BPM offices.
The group thanked the Iloilo City Government for the initiative that benefits the BPM industry and for making the city attractive to investors.
“This would provide well-balanced growth in the economy of the local area. This is a clear advantage that more inbound BPM investments will locate in Iloilo City,” the group added.
Meanwhile, the Iloilo Economic Development Foundation (ILEDF) also commends the Iloilo City Government and the SP for the passage of the said ordinance.
Engr. Terence Uygongco, ILEDF chairman, said this forward-thinking measure reflects a shared commitment to fostering economic growth, creating jobs, and positioning Iloilo City as a competitive investment hub.
“This ordinance is a testament to Iloilo City’s dedication to creating an environment that supports innovation and entrepreneurship. By providing tax relief to BPO developers, we are not only attracting investments but also empowering our local workforce with more opportunities,” Uygongco said.
Roel Z. Castro, ILEDF president, also highlighted the strategic importance of the incentives.
“The BPO sector is a vital driver of Iloilo’s economy. This initiative strengthens our city’s appeal to investors and ensures sustainable growth in key areas. We, at ILEDF, fully support this move as it aligns with our vision for Iloilo as a premier business destination,” Castro added.
The ILEDF further recognizes the ordinance as a crucial step in enhancing Iloilo City’s competitiveness in the global market.
This initiative underscores Iloilo’s readiness to embrace progress while fostering inclusive growth for its residents, the group added./PN
