President Arroyo ordered yesterday the Department of Trade and Industry and the Department of Transportation and Communication to provide either the necessary funding or infrastructure for industries which may be taken out of the annual list of priority industries given tax incentives.
Right now, the IPP list for 2001 is being reviewed. The President considers the list, which includes recommendations from the Regional Development Councils, "too long".
The review will be completed in end-April.
Trade Secretary Manuel Roxas II said the IPP review is part of the National Government’s fiscal tightening program. "If they are not necessary, tax incentives should not be given," he said.
Government sources added most priority areas in the IPP "are probably not sensitive to incentives but require more in terms of funding or infrastructure support." One such priority area are small- and medium-sized enterprises which need financing more than tax breaks.