MANILA, Philippines — The Fiscal Incentives Review Board granted a host of tax perks for the P17-billion rehabilitation of the Hanjin shipyard in the Subic Bay freeport zone
In a statement on Tuesday, the Department of Finance said the tax incentives were granted to Project AGILA following the endorsement of Subic Bay Metropolitan Authority.
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FIRB incentives for the debt-ridden shipyard include special corporate income tax rates, exemption from value-added tax, duty-free imports, and VAT zero-rating on local purchases.
“We expect the project to create jobs in the adjacent communities, increase economic activity as well as support the national government’s economic recovery efforts,” said finance chief Carlos G. Dominguez III.
The rehabilitation is funded by US-based private equity firm Cerberus Capital Management, which was set to purchase the shipyard for $300 million according to a Reuters report.
Dominguez said the project is expected to benefit the Philippine Navy and potential export locators since it would involve the care of ships under the purview of the national navy.