Vol. XXII, No. 191-A [ BusinessWorld Online ]
Saturday, May 2, 2009 | MANILA, PHILIPPINES
Citihomes Builder and Development, Inc. will be receiving tax perks for its P120.9-million construction of 594 mass housing units in Bulacan, the Board of Investments said in a press statement on Friday.
The project will generate jobs for 200 workers once operations begin this month, BoI said.
The project, dubbed Residencia de Muzon, will be on an 8.1-hectare property in San Jose del Monte City, Bulacan. The firm had previously availed of tax perks for similar housing projects in Cavite and Bulacan.
Earlier, the Philippine Constructors Association, Inc. said middle-income housing projects will drive private sector construction this year along with the building of shopping malls.
Under the 2008 Investment Priorities Plan (IPP), low-cost housing projects are deemed as a preferred activity, thus qualifying it for an income tax holiday among other incentives.
Projects granted a "non-pioneer" status including this by Citihomes enjoy a four year tax break.
For the pending 2009 IPP, the Board of Investments has proposed lifting the diminishing income tax holiday rule, which reduces the tax break by 5% for every suceeding project implemented by the same developer. The Finance department, however, has countered that granting tax perks to these projects erode the state’s revenue.
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