Economic zones offer more perks to lure investors

ABS-CBN News

Posted at Jul 17 2017 10:17 AM | Updated as of Jul 17 2017 12:50 PM

MANILA - The Philippine Economic Zone Authority said Monday it would fight for a "status quo" on incentives and offer more perks to lure foreign investors.

The PEZA is proposing 10 years "rent-free" for investors who will locate in "hinterlands" as well as a P2.85 per kilowatthour power subsidy for companies that will set up operations in Mindanao, said Director General Charito Plaza.

Plaza said the Department of Finance has agreed to a "status quo" on existing incentives, including a value added tax exemption for capital goods purchases, as it reforms the system.

"We will, see to it that the interest of our investors who are so highly interested to invest in the Philippines will be protected," Plaza told ANC's Market Edge with Cathy Yang.

The agency recorded P269 billion in ecozone investments under President Rodrigo Duterte, of which P260 billion were made in the last 5 months, she said, adding these generated 74,000 jobs.

Plaza said she was hopeful Congress would not remove tax incentives of companies in PEZA zones as lawmakers seek new revenue sources to offset a reduction in income tax rates.