BOI mulls one-year extension of 2011 IPP

MANILA, Philippines -  The Board of Investments (BOI) is looking at extending the validity of the proposed 2011 Investment Priorities Plan (IPP) for another year as the government does not see any major changes in the priority investment sectors of the country.

“We can’t foresee any changes (in the IPP),” BOI managing head Cristino L. Panlilio told reporters.

Likewise, Panlilio noted that already halfway through the year, the IPP has not been signed by the President. “I have a memo request to make it (IPP) 2011 and 2012.”

The IPP was transmitted to the Palace last February and was taken up during a Cabinet meeting a month and a half ago. Initially, Vice President Jejomar Binay questioned some provisions on the mass housing component but has withdrawn his objection, saying his concerns can be addressed in the implementing rules and regulations (IRR).

The IPP lists down the priority sectors which will receive tax breaks and other incentives. The list is revised yearly but Panlilio said it might be better to make it effective for three years.

Some controversy broke out because of some differences in opinion with regards to the mass housing component. The Department of Finance (DOF) wanted to limit the incentives to housing projects worth P2 million, while the BOI prefers the ceiling to be at P2.5 million. However, Binay and local industry players are requesting it stay at P3 million.

Mass housing has long been an issue in the IPP with some sectors asking for its removal in the list, reasoning that developers will continue to invest in their projectS even without government support.

In fact, data from the BOI showed that there has been an upsurge in approvals for mass housing projects. “2010 was the year of housing projects,” BOI Governor Oliver Butalid said. In fact, Butalid said approvals for mass housing projects have dominated their meetings on a weekly basis.

However, it remained in the IPP because of the housing backlog in the country. In a separate interview, BOI executive director Efren V. Leano said their data showed that the 1.4 million units backlog is expected to further go up to four million by 2016.

“There is a need to encourage companies to go into mass housing,” Leano said. Since 2010, investments in mass housing have reached P1.8 trillion and has generated employment for 100,000 individuals.