BOI says IPP to be valid for 3 years
The 2014 Investments Priorities Plan (IPP) will now be effective for three (3) years and will end to coincide with the end-of-term of the Philippine Development Plan in 2016.
For the past 40 years, the IPP has been reviewed and changed on an annual basis. Every year, the BOI receives recommendations from relevant government agencies and the private sector for proposed changes in the list of sectors and economic activities that are eligible for fiscal incentives under the IPP.
“A consistent, coherent, and a predictable policy environment attracts serious investors to choose the Philippines as their investment destination. We are after businesses that come here for the long term,” said Undersecretary Adrian Cristobal Jr., Managing Head of the BOI.
The BOI has been conducting inter-agency consultations and deliberations on the 2014 IPP framework since late last year. The agency also analyzed industry roadmaps, reviewed national development plans, industry studies, and relevant empirical work related to incentives. The current draft has undergone several peer review sessions with distinguished economists and experts while taking into consideration the actual needs of industry as seen through the more than 27 industry roadmaps submitted to the agency last year.
According to the BOI, the current draft focuses on sub-sectors and economic activities that address specific supply- or value-chain gaps. “IPP serves both as a developmental tool for investment decisions of the private sector, and as a promotional tool for government to encourage first movers in new investment areas. More than a list of economic activities, the 2014 IPP will articulate the country’s industrial policy, strategies, and provide an appropriate response to the key constraints that hinder the entry of investments in critical areas of the economy.” Cristobal added.
The BOI launched in 2012 the Industry Development Program that aims to integrate policy efforts for industry into a Comprehensive National Industrial Strategy (CNIS). For the past two (2) years, the agency has been leading industries in developing roadmaps that will identify gaps in investments, among others. “We are working smart to ensure that policies are harmonized and data are accurate to feed into this new industrial policy,” Cristobal said.
A series of nationwide consultations on the 2014 IPP is being scheduled by the BOI this May, starting with consultations in Metro Manila from May 7 to 9, and followed by consultations in Cebu on May 12 and in Davao, on May 13. (END)