[ manilatimes.net ] March 31, 2011
THE Board of Investments (BOI) will insist on a new guideline that only low cost mass housing units worth P2.5 million and below can avail of incentives under this year’s investment plan.
Trade Undersecretary and BOI Managing Head Cristino Panlilio told reporters that the mass housing developers’ petition that such a cap be removed was raised during the recent meeting of the National Economic and Development Authority (NEDA) Board, which discussed the draft 2011 Investment Priorities Plan (IPP).
The BOI earlier proposed a P2-million cap, but later jacked up the ceiling to appease developers.
State-run Housing and Urban Development Coordinating Council defines low cost housing as units that cost between P751,000 and P3 million.
Developers belonging to the Chamber of Real Estate and Builders’ Association Inc. and the Subdivision and Housing Developers Association Inc. had said that taking away the perks for units worth more than P2.5 million would be a disincentive to the market of such housing units.
But Panlilio said low cost mass housing units worth less than P2.5 million are “80 [percent] to 90 percent of what is considered affordable housing for the middle market.”
He said the NEDA board would adopt the BOI’s position on the issue.
Trade Secretary Gregory Domingo told reporters on Monday that the 2011 IPP has just “a few items” to be ironed out before it is submitted for the President’s approval.
The annual IPP lists down business activities that can be granted incentives by the BOI.
Ben Arnold O. De Vera