Jetti Petroleum seeks BOI perks

MANILA, Philippines - Jetti Petroleum Inc., a firm engaged in the import, blending and distribution of petroleum products, is applying for registration with the Board of Investments (BOI) to qualify for incentives for its two storage facilities.

“Notice is hereby given that Jetti Petroleum Inc., is applying for registration with the BOI as industry participant with new investments for oil storage facilities under Oil Industry Deregulation Law (Republic Act 8479),” the BOI said in a published notice.

Jetti is investing in a facility with a total storage capacity of 70 million liters in Mariveles, Bataan.

The firm is likewise making an investment for its western Visayas terminal which has a total storage capacity of six million liters in Iloilo City.

The amount of investments to be made for the two storage facilities were not immediately available.

Registering as an industry participant with the BOI will enable the firm to enjoy incentives such as income tax holidays, tax credit for taxes and duties on raw materials, and deduction of labor expenses from taxable incomes.

A firm registered with the BOI may likewise be entitled to other incentives such as access to bonded manufacturing or trading warehouse schemes, exemption from taxes and duties on imported supplies and spare parts for consigned equipment; and exemption from wharfage dues and any export tax, duty free, and impost.

Refining, storage, distribution and marketing of petroleum products is part of the mandatory list of the 2011 Investment Priorities Plan (IPP) currently being implemented.

The mandatory list covers activities that require their inclusion in the IPP as provided for under existing laws.

The 2012 IPP signed by President Benigno Aquino III in June retained refining, storage, marketing and distribution of petroleum products under the mandatory list.

The 2012 IPP mandatory list includes other activities such as industrial tree plantation; exploration, mining, quarrying and processing of minerals; publication or printing of books; ecological solid waste management; and clean water projects.

Listed as preferred activities under the 2012 IPP are agriculture or agribusiness and fishery; creative industries or knowledge-based services; shipbuilding; mass housing; iron and steel; energy; infrastructure; research and development; green projects; motor vehicles; strategic projects; hospital or medical services; and disaster prevention, mitigation and recovery projects.

The government is holding consultations with the different sectors for the rules and regulations of the 2012 IPP.

Trade officials said earlier the consultations are being conducted to ensure that the government gets value for the incentives provided to investing firms.