San Miguel shipping unit receives tax perks

ABS-CBN News

Posted at Oct 29 2010 12:08 AM | Updated as of Oct 29 2010 08:08 AM

MANILA, Philippines - The shipping arm of diversifying conglomerate San Miguel Corporation has qualified for tax incentives, the Board of Investments said on Thursday.

SMC Shipping and Lighterage Corp will be allowed a duty-free importation of equipment for its P113 milion venture to operate a barge to transport cement and coal.

San Miguel controls Petron Corporation, which has an oil refinery and a coal-fired power generation plant in Limay, Bataan. Last October 20, Petron's power plant was also granted tax incentives.

Sixty-one percent of the output from Petron's power plant will provide power to the refinery while the balance will be sold to electric cooperatives and Manila Electric Co., where San Miguel is the second biggest shareholder.

Aside from SMC Shipping, the other firms that received tax perks from the BOI on Thursday are:

  • Gloria De Dapitan, Inc (expanding a theme park in Dapitan, Zamboanga del Norte)
  • Jentec Storage, Inc (development of a cold storage facility for farm crops)
  • Feranti Shirt Factory, Inc. (expansion of a garment's factory in Caloocan)
  • Hardware Labs Performance Systems, Inc. (production of equipment for cooling down electronics)