NDC seeks tax break for P7-B bond float

The National Development Co. (NDC) is seeking a tax exemption from the Bureau of Internal Revenue (BIR) for the second round of NDC bonds worth P7 billion it plans to float next month.

NDC general manager Ofelia Bulaong said yesterday that the NDC is planning to float another P7 billion worth of bonds in October to refinance the first issuance worth P5 billion.

The first NDC bonds, also known as the ERAP or Economic Recovery through Agricultural Productivity bonds, were issued in 1999 and will mature in 2004.

Bulaong said the additional P2 billion will be used to finance the government’s agrarian reform program and housing projects.

The new NDC bonds will have a longer maturity of seven years.

"The NDC is seeking tax exemption anew to make the bonds more attractive to buyers," a government source said, adding that "without the exemption, the NDC bonds will be subject to documentary stamp tax and withholding tax."

The NDC wants to issue the bonds by next month take advantage of the prevailing low interest rates. – Marianne Go