By Louella D. Desiderio (The
Philippine Star) | Updated June 20, 2015 - 12:00am
MANILA, Philippines - The Board of
Investments (BOI) has raised concern over the delay in the release of the
Bureau of Internal Revenue’s revenue regulations to provide incentives to
tourism investments under the Tourism Act as the government encourages tourism
activities and projects in the country.
“That is a concern. I think there is a
general concern (because) that is a law. That is a congressional act,” BOI
managing head Adrian Cristobal Jr. told reporters yesterday.
Under Republic Act 9593 or the Tourism
Act of 2009 approved by then President and now Pampanga Rep. Gloria
Macapagal-Arroyo, tourism economic zones (TEZ) will be created in which tourism
projects or locators can enjoy incentives.
To avail of incentives, tourism
enterprises within a TEZ will have to register with the Tourism Infrastructure
and Enterprise Zone Authority (TIEZA), an attached agency of the Department of
Tourism.
Among the incentives tourism
enterprises within a TEZ can enjoy are income tax holidays; gross income
taxation of five percent; 100 percent exemption on all taxes and customs duties
on the importation of capital equipment; and the exemption of transportation
and spare parts from tariffs and duties.
The grant of incentives, however,
requires release of revenue regulations by the BIR.
Earlier, the Tourism Promotion Board
(TPB) also expressed concern in the delay of release of the BIR revenue
regulations which should facilitate the grant of incentives under the law.
The TPB is encouraging firms to make
investments in tourism projects in the country and there is interest from
companies to invest.
Cristobal said the BOI could accept
applications for tourism establishments outside the TEZs.
Tourism is among the sectors being
promoted by the BOI for investments.
The Philippine Economic Zone Authority
(PEZA), which previously provided incentives to tourism establishments within
its administered ecozones meanwhile, has stopped approval of registration of
such projects.
The TPB said since the Tourism Act was
passed, tourism investments should be under the TIEZA.
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