MANILA, Philippines - The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) remains hopeful the impasse on the guidelines on the grant of tax and other fiscal incentives by the Bureau of Internal Revenue (BIR) to infrastructure projects will be resolved soon.
“There’s been top-level meetings with the President on this. We’re still hopeful that they grant the incentives to the infrastructure projects,” TIEZA assistant chief operating officer Jetro Lozada said.
TIEZA has stopped processing the investment packages of around 15 companies in 2013 due to the impasse on the incentive guidelines.
“We didn’t want to be processing all the applications and yet we can’t give the incentives they are looking for,” Lozada said.
An attached agency of the Department of Tourism (DOT), TIEZA is mandated to designate, regulate and supervise tourism enterprise zones (TEZs) established under Republic Act 9593.
Signed by then President Gloria Macapagal-Arroyo, RA 9593 or the Tourism Act of 2009 provides for the creation that will designate TEZs for which investment and development incentives are accorded for a limited time.
Under Section 86, the law grants incentives such as gross income taxation of five percent, 100 percent exemption on all taxes and customs duties on the importation of capital equipment, and the exemption of transportation and spare parts from tariffs and duties.
The BIR has not yet given its decision concerning incentives for tourism projects under the TIEZA law.
“There are two bills filed that are studied in efforts to rationalize the incentive programs of the government. They are waiting for that and are still in the process,” he said.
Meanwhile, TIEZA’s biggest investment at present is the Intramuros property worth P700 million for improvements and refurbishment, as well as port terminals in San Vicente in Palawan and in Kalibo, Aklan.
For the Asia-Pacific Economic Community (APEC) 2015, TIEZA has contributed P300 million for the Iloilo Convention Center which will be inaugurated on Sept.14, and other site enhancements of APEC destinations in the country.