ILOILO CITY MOVES TO ATTRACT MORE INVESTORS

The committee formed by the city government to look into possible amendments in the present Incentives Code of Iloilo has reduced the capitalization of investors that will avail tax holidays on real property and business taxes from P50 million to P15 million.

Mayor Jerry Treñas said the committee chaired by Councilor Jose Espinosa III has trimmed down the capitalization of prospective investors who will avail of the incentives. The tax break will be done in gradual basis within a five-year period.

The existing code only gives a three-year tax break for investors. In its proposed tax break, the committee wants it to lengthen to four or five years. The proposed incentive is designed to attract would be investors in the city in spite of the financial crisis.

The committee will present the new scheme of the Incentives Code as soon as it has ironed out all the details which is both beneficial to the city and the investors, said Treñas.

Treñas is optimistic that the proposed changes in the Incentive Code will be approved by members of the legislative body. There are three councilors who are with the committee, namely, Councilor Eduardo Peñaredondo and Ely Estante aside from Espinosa. It needs an ordinance as assurance for the entering investors.

The entry of new investors with big capitalization has a multiplier effect not only on the city government but as well as to the people. It will generate employment as soon as the construction phase of the business site starts, said Treñas.

As soon as the construction phase is done, the firm will employ people to work with them. It will spark economic activity. The taxes as payment for the city government come as the third beneficiary for the entry of new investors, he said.(http://www.thenewstoday.info)

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AMENDMENTS IN INVESTMENT INCENTIVES CODE EYED

THE Iloilo City Council is proposing amendments to Regulation Ordinance No. 2006-114 (Iloilo City Investment Incentives Code of 2006) to attract more businesses in the metropolis.

Vice Mayor Jed Patrick Mabilog proposed amendments to Section 17 of the incentive code during the council’s regular session Wednesday. 

The council referred the measure to the committee on economic promotions chaired by Councilor Jose Espinosa III.

The proposed amendments include exemption from the payment of taxes during the construction phase of any business in the city with P100 million or more capitalization.

Another amendment is the exemption of big construction businesses from the truck ban imposed by Traffic Engineering and Management Unit.  READ MORE...

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ILOILO CITY GOV'T TO OFFER INCENTIVE PACKAGE TO INVESTORS THIS 2009

By Maricar M. Calubiran, TNT

In anticipation of the possible effects of the global financial crisis, the city government will formulate an incentive package in attracting investors like the Megaworld Corporation.

Mayor Jerry Treñas said they will first create an incentive board that will primarily design an incentive package for the investors. The incentive package will center in giving incentives through business taxes and building incentive taxes.

The presence of investors in the city will provide continuing jobs to the Ilonggos from the construction phase of their edifice and final completion of the business, said Treñas.

The board will be composed of Councilor Jose Espinosa III, chair of the committee on economic affairs of the Sangguniang Panlungsod, Majority Floor Leader Eduardo Peñaredondo, chiefs of office of the City Planning and Development Office (CPDO), City Treasurers Office and City Assessors with the Local Incentive Board headed by June Borromeo, said Treñas.

The incentive package is the city’s approach in attracting investors. It will serve as go signal for the investors who are in “wait and see attitude” during this time. The investors are still apprehensive to pour their investments because of the financial market.

The effects of the global financial crisis are projected to be felt by Filipinos in the first quarter of 2009. The global crisis blocks the investors from further investing in different kinds of business.

Initially, the incentive package will cover a 3-year period for businesses with P50 million investments and above and investments for Small and Medium Enterprise (SMEs) engaged in business such as coffee shops.

The businesses that will employ certain number of workers can avail of the incentive package. The incentive package is also aimed to enhance the interest of Megaworld Corporation to start their project at the old Mandurriao airport area.

The Megaworld has yet to start their project at the old airport. It was learned they are preparing all the required permits prior to the construction proper of their work and play investment.

NEWS COURTESY OF: http://www.thenewstoday.info

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