[ Malaya.com.ph ] October 14, 2010
The Housing and Urban Development Coordinating Council (HUDCC) will review the current definition of what constitutes low-cost mass housing in order for developers to enjoy incentives.
Vice President Jejomar Binay, HUDCC chairman, said incentives are needed to address the 3 million housing backlog.
He said there may be a need to review the current definition of low-cost housing, which under the law means units priced from P400,000 to P3 million.
The BOI recently clipped the perks for vertical housing development located in Metro Manila. Instead of the regular four years, the income tax holiday was cut to three.
The BOI recently granted incentives to Lerato Tower 1, a P816 million housing development of Ayala Land Inc.’s unit Alveo Land Corp. in the heart of Makati.
The project was qualified to incentives since its studio units are offered within the low-cost housing definition.
Low-cost housing is one of the preferred activities under infrastructure under the BOI’s Investment Priorities Plan.
Four years of income tax holiday given to vertical housing projects in areas that are less served.
BOI executive director Efren Leano said the BOI is confined to grant perks to housing as defined by the HUDCC.
"It may be time to review it," said Leano.
In his speech yesterday at the Philippine Business Conference, Binay said the business community should get the support of the people in addressing issues concerning business.
"The interests of people and industry are always in conflict but it is easier now because they co-exist," Binay said.
Binay suggested that the Philippine Chamber of Commerce and Industry focus on issues and concern that would take the Philippines global competitiveness as a nation.’
He also rallied business to face the challenges of free trade agreements such as the Asean FTA.
"These are life and death issues from farmers to factory workers as well as businesses. The past administrations opened our markets but failed to prepare for the onslaught of competitiveness. We are now on defensive. Factories are fighting for survival while the agriculture sector is battered by imported goods. We are importing even camote now," Binay said.
He said PCCI should concentrate on power, transportation and tourism as these as platforms to strengthen the competitiveness.
Such a proposal is easier said than done.
"The power situation, it’s current situation is pretty bad. But it’s future is very bright. The Philippines is the second largest producer of geothermal energy. In tourism, the Philippines has numerous attractions and is the 53rd most visited country, but easy access should be provided through transportation," he said.
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