Capital equipment incentives to bring more investments

EXECUTIVE Order (EO) 22 or the extension of capital equipment incentives would help with the influx and the positive performance of the investments in Davao said the Board of Investments (BOI) Davao Extension Office head.

President Rodrigo Duterte signed the EO 22 last month, exempting business enterprises from paying duties when they acquire capital equipment from other countries. However, this exemption will only be made available once Certificate of Authority had been issued by BOI to the importing companies. The exemption also only exclusively covers the equipment that are not made in the Philippines or those that are not efficiently available in the country due to stock shortage, and for exclusive use of the importing company.

“It (the EO 22) can help reduce the importation cost of the equipment for our industry especially those coming from countries that we don’t have economic cooperation,” said BOI Davao Extension Office Chief Gil Dureza.

He added that the projects and business enterprises covered by this EO are all those listed under the BOI investments priority lists. According to the 2017 Investment Priorities Plan IPP, the priority investments include manufacturing activities like agro-processing, agriculture, fishery, and forestry, strategic services, healthcare services, mass housing, infrastructure and logistics (including LGU-PPPs), innovation drivers, inclusive business models, environment or climate change-related projects, and energy.