DAVAO CITY (MindaNews/3 Jan) – The city government will continue the suspension of fiscal incentives for prospective investors until September this year.
Jason C. Magnaye, officer-in-charge of the Davao City Investment and Promotions Center, said on Monday in the weekly press forum at Café Rysus in SM City Davao that the local government unit can save at least P10 million with the suspension.
Fiscal incentives refer to the exemption from building permit fees, mayor’s permit fees, basic real property tax as well as from business sales tax within three years from the start of commercial operations of the applicant business.
“It would depend on the city council on whether or not to still halt it after September…. It does not, however, make an impact to the (number of) investors,” he said, explaining that the local government is strengthening the non-fiscal perks.
Non-fiscal incentives include facilitation of business permits and licenses and offering of databanking services, investment counseling, brokering and business matching services, processing of incentives and finding suitable sites, raw materials and manpower.
As of September last year, he said the center only offered fiscal incentives to new projects worth P3.4 billion.
The center temporarily stopped the fiscal perks since September last year after the city council approved its corresponding ordinance to help augment the potential shortfall of revenues this year.
“This ordinance is enacted as a measure to help augment the potential shortfall of revenues from the internal revenue allotment reduction pursuant to the Department of Budget and Management Local Budget Memorandum No. 65 dated June 27,” the measure stated.
The city’s share is reduced by P359 million this year. (MindaNews)