Investments in cement, iron and steel, and research development/training institutions will now be given fiscal and non-fiscal incentives after the Cabinet approved the 2007 Investment Priorities Plan (IPP) yesterday morning.
In an interview, Trade and Industry (DTI) Undersecretary Elmer C. Hernandez said President Arroyo, together with her Cabinet approved the IPP before she left for her official visit to Japan.
Hernandez said the only change suggested by the members of the Cabinet is with regards to the agribusiness. “From agriculture and fisheries, they wanted it changed to agriculture, agribusiness and fisheries,” he explained.
According to Hernandez, the Cabinet agreed to carry all the provisions including the controversial last minute changes made at the behest of some government agencies.
The cement sector was listed at the request of the Department of Finance (DOF) while the telecommunications sector, which was earlier removed by the DTI, was returned at the suggestion of the National Telecommunications Commission (NTC).
The DOF requested that the cement sector be given fiscal and non-fiscal incentives as long as the cement operations are integrated with mining activities. Hernandez said this move will ensure that the mined resources will have a higher value added.
“Instead of importing limestones, why not make a high value product like cement,” Hernandez explained. This means that in order to avail of the incentives, expansion of cement companies must be done simultaneously with bigger mining activities.
“Cement is a basic commodity. There should be enough supply for infrastructure projects and mass housing,” Hernandez said, adding that enough supply would also translate to lower prices of cement.
The 2007 IPP has the theme “propelling the nation to first world country status in 20 years”. The goal is to generate jobs, provide food and deliver basic services to the people. To achieve this, the DTI proposed promoting the growth of micro, small and medium enterprises (MSMEs). DTI estimates that 85 percent of businesses operating in the country are MSMEs.