THE Fiscal Incentives Review Board (FIRB) last year approved P4.28 billion in tax subsidies for seven government agencies and state-run corporations, according to a statement released by the Department of Finance (DOF).
Juvy Danofrata, DOF assistant secretary, said the recipients of the tax subsidies are the University of the Philippines-Baguio, Philippine Deposit Insurance Corp., Armed Forces of the Philippines Commissary and Exchange Service, Small Business Corp., Government Service Insurance Corp, Department of Interior and Local Government and the Intercontinental Broadcasting Corp.
The FIRB also approved in 2021 the grant of tax incentives to five big-ticket projects with a combined investment capital of P119.5 billion, of which four are located outside Metro Manila.
Danofrata, who also heads the FIRB secretariat, said the five projects granted tax incentives by the FIRB were from the nine applications submitted by the Board of Investments for approval.
One project was disapproved, leaving three more to be decided upon by the Board as of the end of 2021.
The rail operations of the proposed Makati City Subway was the only project located in Metro Manila that was approved for tax incentives. The rest are located in Iloilo, Davao, Batangas and Pampanga which involve cement manufacturing activities and the construction of mass housing units.
Under Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law, the grant of tax incentives to registered projects or activities with investment capital of P1 billion and below is delegated by the FIRB to the investment promotion agencies (IPAs). The FIRB is also given the discretion to increase this threshold amount.
After the CREATE law took effect on April 12 last year, the functions of the FIRB have been expanded to cover not only tax incentives given to government-owned or -controlled corporations, but also those granted by IPAs and other state-run agencies to their respective registered business enterprises.
“Our efforts to enhance the country’s fiscal incentives system lead to attracting large amounts of investments from foreign investors which, in turn, will generate more employment opportunities and promote economic stability,” said Danofrata. (Malaya Business Insights/Angela Celis)
