Gov’t to give tax perks to cement manufacturing
Taking advantage of the government’s ambitious infrastructure development program, the Board of Investments (BOI) will soon grant incentives to cement manufacturing through the investment priorities plan (IPP) in a bid to meet the expected jump in demand for the product, a top official said.
BOI Managing Head Ceferino S. Rodolfo told reporters last week said that the annual demand for cement is expected to get a boost from the government’s massive infrastructure program, with annual growth expected at 12 percent from a yearly average expansion of 7 to 8 percent previously.
This means that from the current demand of 21 to 25 million metric tons a year, the figure could likely reach around 40 million metric tons by 2021, he said.
In order to lessen dependence on imports, the BOI is supporting the local cement industry by offering them perks under the 2017-2019 IPP, which is a list of preferred business activities that the government wants the private sector to invest in by providing them perks such as income tax holidays.
In the case of cement manufacturing, Rodolfo said that this would be under the condition the interested company must have an integrated cement plant. He said one line of production in a cement plant has an estimated cost of $250 million to $600 million.
“The cement industry needs a little help, that’s why they’ve been asking for incentives. It’s been a while. That’s why you would notice there aren’t really that many investments in cement for a long time,” he said. |
