Tax breaks pushed for Cebu investors

CEBU, Philippines - The Cebu City government should provide incentives to bigtime investors and remove everything that may discourage businessmen from investing here, said Joel Mari Yu of the Cebu City Investment Promotions Center.

Yu said that some of the major fiscal incentives that can be done to attract more investors is to exempt them from payment of corporate income taxes, payment of duties and taxes on importation of capital equipment and raw materials.

It can be done in coordination with some other government agencies, while the local incentives that can be granted to businessmen for certain periods including the exemption from the payment of real property taxes.

Yu added that investors can be easily attracted if the government will eliminate corruption and red tape and ensure a stable peace and order, with fully-maintained roads and proper collection of garbage.

Yu issued the statement when he was invited by the City Council last Wednesday during the public hearing of the proposal to enact an ordinance to be called Cebu City Investment Incentive Code of 2012.”

If the proposed ordinance of Councilor Alvin Arcilla is approved, a Cebu City Investment Incentive Board will be created headed by the mayor.

Its members are the city treasurer, planning and development officer, chairpersons of the City Council’s committees on budget and finance; and of the Trade, Commerce and Entrepreneurship.

Other members are the regional director of the Department of Trade and Industry, president of the Cebu Chamber of Commerce and Industry, and a private sector representative to be appointed by the mayor who will serve for two years.

Among the tasks of the board is to promote the city as an investment destination, aside from adopting short-, medium- and long-term investment promotion programs to attract more investors.

At present it is the CIPC, under the leadership of Yu, that is in-charge of the promotion to encourage foreign and local investors to invest in Cebu City, particularly in the South Road Properties.

The CIPC is receiving P3 million every year from the city as financial assistance for being the marketing arm of Cebu City since 1994. But during the administration of Mayor Michael Rama the CIPC has failed to push for any investor for the South Road Properties.

Yu, however, clarified that the CIPC’s task is not only to market the SRP, but to invite investors to put up businesses all over the city.

“Kana diay’ng mga business establishment’s sa IT Park kami man ang nag-invite ana,” Yu said.

In an earlier interview, Yu said that the political bickering of the mayor and the members of the City Council has affected the SRP because the investors are still hesitant to purchase lots for their business there.

If the proposed Cebu City Investment Incentive Board will be created, the CIPC will only become its secretariat.  Among its jobs are to accept, process and evaluate applications for registration for those who wish to avail of the local incentives and to provide support services to investors.  –(FREEMAN)