Gov't opens ecozones to agribusiness

Agriculture Secretary Edgardo Angara disclosed over the weekend that the government is opening up its export processing zones and industrial estates to agribusiness ventures, allowing interested local and foreign investors to avail themselves of certain tax incentives and benefits normally accorded to light industry and manufacturing projects.

This means high value crop growers, export-oriented orchid producers, and even food processors could operate side by side computer chip makers and electric parts manufacturers inside processing zones and industrial estates, enjoying the same tax perks as those given the latter.

"Pwede pala ang PEZA (Philippine Export Processing Zone Authority) sites for agribusiness projects. So, we are now closely studying how to package the tax incentives so as to attract investors to relocate into these areas," Angara said during a breakfast forum of the 365 Club held at the Hotel Intercontinental in Makati City Saturday.

Angara made the statement following a query from a listener as to how the Estrada administration can find ways of luring investors to put their money into agriculture as a means to boost food production and increase farm productivity.

To get the scheme underway, the DA chief said the government has already identified some 1,500 hectares of prime farm land inside the special economic zone of the former Clark Air Base as an "agro-business park" which it intends to offer to Taiwanese and other foreign investors for development.

Locators in export processing zones, whether locally owned or with foreign partners, are normally given tax incentives, including duty or tax-free entry of capital equipment, income tax breaks for a certain period of time, and other financial perks.

There are 61 economic zones, industrial parks and estates operating in the Philippines today with a total area of 6,600 hectares, PEZA records show. Forty seven of these sites are in Luzon, eight in the Visayas and six in Mindanao.