Film making, TV production get perks under 2011 IPP

MANILA, Philippines - At the behest of President Aquino, film making and television productions will receive income tax holiday (ITH) under the Board of Investment’s 2011 Investment Priorities Plan (IPP).

In an interview, Trade Secretary and BOI chairman Gregory L. Domingo said they met with President Aquino Tuesday to discuss the IPP. During the meeting, the president requested that two more industries be included in the IPP list, bringing the total list to 13.

The two industries that were added to the list were creative industries and disaster mitigating projects. Film and TV production fall under creative industries.

These two sectors were included in the IPP list last year but were removed by the BOI. Creative Industries was eliminated because films and productions that will be shown overseas qualify for incentives because it is for export while the disaster mitigating projects were removed because no company availed of it last year and there are opinions that disaster mitigation should be undertaken by the government.

“He (President Aquino) wanted companies that serve the domestic market to enjoy incentives,” Domingo said. He explained that this will make local film and TV production more competitive. Likewise, he noted that local film production uses imported materials. Incentives under IPP include duty free importation of capital equipment.

However, Domingo refused to confirm reports that President Aquino has already decided on the issue of price ceiling for mass housing projects. There are reports that Aquino decided to adopt the BOI position and put the ceiling at P2.5 million. This means that housing units that are sold for P2.5 million and below will be considered mass housing and the developer will be entitled to ITH. There are three positions on the issue. The Finance department would like to lower the ceiling to P2 million while Vice President Jejomar Binay would like the ceiling to remain at P3 million.

For his part, BOI managing head Cristino L. Panlilio said film production is a risky business. “It’s a fledgling industry that we can promote,” Panlilio who was also present during the meeting with Aquino said.

Meanwhile, Panlilio said they are getting ready to send to Malacanang the copy of the revised IPP with the two additional industries.