FIRB grants perks to 5 projects worth nearly P120 billion

MANILA, Philippines — The Cabinet-level Fiscal Incentives Review Board (FIRB) has approved five projects worth nearly P120 billion in its first year upon creation in 2021 with the signing of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

Finance assistant secretary Juvy Danofrata yesterday said the FIRB authorized five projects—amounting to P119.5 billion—to push through with fiscal incentives in 2021.

Out of the five projects awarded with incentives, only the proposed Makati rail operations is located within Metro Manila. The other four were situated outside of the nation’s capital, namely, Iloilo, Davao, Batangas and Pampanga, most of which were involved in manufacturing activities and construction of mass housing units.

Danofrata also said the FIRB would keep on conducting town hall meetings and consultations with investment promotion agencies (IPAs) on the provisions of the CREATE Act. She added the IPAs need to study the law more to understand what projects qualify for tax perks.

Danofrata said the FIRB also approved P4.28 billion worth of tax subsidies for seven government agencies and state-run firms. Among the recipients of the subsidies are the University of the Philippines in Baguio, Philippine Deposit Insurance Corp., Armed Forces of the Philippines Commissary and Exchange Service, and Small Business Corp.

Danofrata said the FIRB will sustain its efforts to improve the grant and use of tax privileges in the country. She pointed out that by focusing on key sectors, the economy will benefit from the inflow of new investments and creation of additional jobs.

“Our efforts to enhance the country’s fiscal incentives system lead to attracting large amounts of investments from foreign investors, which, in turn, will generate more employment opportunities and promote economic stability,” Danofrata said.

Under the CREATE Act, IPAs approve the incentives of projects below P1 billion, while the FIRB selects the tax perks for business activities above P1 billion.