2017 IPP Highlights Inclusive Business Models
Inclusive business model or IB model is among the preferred activities in the newly-approved 2017 Investment Priorities Plan (IPP) which was approved on February 28, 2017 by President Rodrigo Duterte.
With the theme “Scaling Up and Dispersing Opportunities”, the 2017 IPP integrates significant changes, following President Duterte’s Zero+10-point Socio Economic Agenda, the long-term vision embodied in AmbisyonNatin 2040, and the medium-term Philippine Development Plan 2017-2022. The IPP also incorporates the Department of Trade and Industry’s (DTI) Trabaho at Negosyo agenda and programs such as the Manufacturing Resurgence Program (MRP), Comprehensive National Industrial Strategy (CNIS) and the Industry Development Program.
As defined in the IPP, the IB models cover business activities of medium and large enterprises (MLEs) under the agribusiness and tourism sectors that provide business opportunities to micro and small enterprises (MSEs) as part of their value chains. Staying true to the IPP’s theme of dispersing opportunities, the IB model activity requires qualified agribusiness enterprises to exhibit innovation in the business model through provision of technical assistance, inputs and/ or technology to MSEs and/ or individual farmers and fisher folk to increase productivity and improve product quality.
Registered new projects may upgrade to pioneer status for an additional 1 year Income Tax Holiday (ITH). In addition, qualified enterprises under the IB models are required to target and accomplish the following:
Upon the IPP’s approval, DTI’s Board of Investments (BOI) embarked in the conduct of the IPP road shows in key regions and cities this year, with the Clark Freeport Zone in Pampanga as venue for Central Luzon.
During the IPP Road Show held in Clark Freeport Zone on August 01, 2017, BOI Director for Manufacturing Industries Services, Ms. Evariste Cagatan, discussed the salient features of the new preferred investments list which also includes the following activities:
All qualified Manufacturing activities including Agro-Processing
Agriculture, Fishery and Forestry
Strategic Services
Healthcare Services including Drug Rehabilitation Centers
Mass Housing
Infrastructure and Logistics including LGU PPPs
Innovation Drivers
Environment or Climate Change-Related Projects
Energy
Serving as a blueprint for local and foreign investors, the IPP includes a list of promoted areas of investments eligible for government incentives. Among the fiscal incentives being offered include ITH, exemption from taxes and duties on imported spare parts, tax credits, and additional deductions from taxable income. Non-fiscal incentives such as employment of foreign nationals and privilege to operate a bonded manufacturing/trading warehouse are also available.
The IPP is a rolling three-year plan and subject to annual review. This year’s theme highlights the government’s thrust for inclusive growth and poverty reduction.
