Submission of IPP proposals on till June

MANILA, Philippines - The Board of Investments (BOI) plans to submit the proposed 2013 Investment Priorities Plan (IPP) to the Office of the President by next month, later than initially planned, as it still needs to consult with other government agencies regarding sectors that could qualify for incentives.

“We want to submit by June. That is the plan,” Lucita Reyes, BOI executive director told reporters.

Under Executive Order 226 or the Omnibus Investments Code, the IPP must be submitted to the President not later than the end of March of every year.

The IPP identifies activities or sectors which could be given fiscal and non-fiscal incentives by the government.

Reyes said the BOI has yet to give the IPP to the President as it still needs to consult other government agencies.

“We are giving other agencies a chance to comment on the IPP,” she said.

She noted that the agencies to be consulted are those which oversee sectors that are part of the list.

“Reason for consultation is that the proposed IPP had undergone public consultation last February and it is just (a) carryover of 2012 IPP,” she added.

The 2012 IPP listed the following as preferred activities: agriculture/agribusiness and fishery, creative industries/knowledge-based services, shipbuilding, mass housing, iron and steel, energy, infrastructure and Public Private Partnership projects, research & development, green projects, hospital and medical services projects, motor vehicles, strategic projects, and disaster prevention and recovery projects.

Last year’s plan also had a mandatory list which covered industries that require their inclusion in the IPP as provided for under existing laws such as industrial tree plantation; exploration, mining, quarrying and processing of minerals; publication or printing of books/textbooks; refining, storage, marketing and distribution of petroleum products; ecological solid waste management; clean water projects; rehabilitation, self-development and self-reliance of persons with disability; renewable energy; and tourism.

The 2012 IPP also gives incentives to export activities as well as priority activities identified by the regional BOI of the Autonomous Region in Muslim Mindanao.

A BOI official said the Department of Finance wants some activities, including the automotive sector, to be removed from the IPP list.

Reyes said that while the 2013 IPP has yet to be approved, firms that would apply for incentives now would be covered with the 2012 IPP.