MANILA, Philippines - A unit of San Miguel Corp. (SMC) is seeking tax perks from the government for a meat processing plant in Cavite.
The Board of Investments (BOI) said Purefoods Hormel Co. Inc. is applying for registration as expanding producer of processed meat (breaded, buttered and fried) on a non-pioneer status, with project site located in Sitio de Puego, Brgy. San Francisco, Gen. Trias Cavite.
The project has a capacity of 7,575 metric tons per year.
The firm can enjoy perks such as exemption from corporate income tax for four years as well as duty-free importation of capital equipment if its application for registration is approved by the BOI.
The government can offer incentives to firms that invest or engage in activities being promoted under the Investment Priorities Plan (IPP).
The IPP is formulated by holding consultations to get inputs of different government agencies and industry stakeholders.
The 2012 IPP lists agriculture or agribusiness and fishery; creative industries or knowledge-based services; energy; shipbuilding; mass housing; infrastructure; research and development; green projects; motor vehicles; strategic projects; disaster prevention, mitigation and recovery projects; iron and steel; and hospital or medical services as preferred activities.
The BOI is set to hold public hearings on the guidelines of the proposed 2013 IPP this week.
Purefoods Hormel Co., a joint venture between San Miguel Pure Foods Co. Inc. and Hormel USA, is engaged in the production and marketing of processed meats in the country.
The firm accounts for nearly two-thirds of the processed meats market in the country, leading both the refrigerated and canned segments.
Among its well-known brands are Purefoods Tender Juicy Hotdog, Purefoods Corned Beef, Purefoods Luncheon Meat, Purefoods Fiesta Ham, Purefoods Fun Nuggets, Purefoods Classic Honeycured Bacon, Purefoods Sweet Ham, Purefoods Cooked Ham and Purefoods Star Hotdog.
Apart from its food business, SMC is also engaged in power (SMC Global), beer (San Miguel Brewery, Inc.), packaging (San Miguel Yamamura Packaging Corp.), liquor (Ginebra San Miguel Inc.), petroleum (Petron Corp.), airline (Philippine Airlines) and infrastructure projects.