SRP Firms Can Avail of Tax Perks (June 2006)

Locators of the South Reclamation Project (SRP) will qualify for tax perks as the entire property has been registered with the Philippine Economic Zone Authority (Peza) as a special economic zone (ecozone).

“This is what makes the SRP different from other reclamation projects. As long as the companies belong to industries that qualify for tax incentives (such as information technology, manufacturing and tourism), they will get the tax perks due them,” Cebu Investment Promotions Center (CIPC) managing director Joel Mari Yu said.

SRP is now considered a mixed land-use property from being a pure industrial-use zone. It can now accommodate companies with light manufacturing, commercial, tourism and information technology (IT) operations, among others.

Change

“We have explained the change to the Jbic (Japan Bank for International Cooperation). Times have changed. In 1992, when the loan was incurred, the Philippines was the premier destination for manufacturing companies. Now, manufacturing companies are going to China,” Yu told a press conference.

Businesses not allowed at the SRP include housing, heavy industries, gambling establishments and stand-alone golf course.

Even though some 10 local and foreign companies have already expressed intention to locate at the SRP, the CIPC continues to market the property outside the country, especially in Japan.

CIPC is the agency tasked to market the SRP.

Yu said CIPC has sought assistance from the Japanese Government through Jbic, the Japan External Trade Organization (Jetro) and the Japan International Cooperation Agency.

Developers

“The Japanese Government will provide us a consultant who will identify and arrange meetings for us with possible property developers in Japan while Jetro has included information on the SRP in their advisories worldwide,” he said.

CIPC also had discussions with Jurong Estates in Singapore.

Yu said the Singapore Government has committed to organize this year a forum in Singapore that will give Cebu the opportunity to present SRP to land developers in that country.

Similar forums will also be held in Hong Kong and Taiwan with the help of Philippine commercial attachés in the two countries.
On June 25 to 30, CIPC will be in Tokyo, Japan for an investment mission to promote the SRP to manufacturing, IT and retirement facility developers there.

“But we will proceed with the marketing only if the City (Government) starts constructing roads within the SRP,” Yu said.