The Davao City Investment and Promotion Center (DCIPC) is boosting attractions in Davao City to investors by proposing an amendment to the Davao City Investment Incentive Code.
Christian Cambaya, unit head for Investor Assistance and Servicing of DCPIC, said on Friday that the code will enumerate Preferred Investment Area (PIA) and also provide tax incentives to investors who have an interest in investing in the city.
Cambaya said, currently, there are 10 sectors under the PIA, which include property development, tourism, agribusiness, tourism, technology, captured all the BPOs, transportation, and infrastructure.
He also said its partner Punongbayan and Araullo (P and A), an accounting firm, will lead in the review and study of the incentive code.
He said there are two components covered under the Memorandum of Agreement (MOA) signed by DCIPC and P and A such as the conduct of study and review of the incentive code, and P and A will come up with the Doing Business in Davao study.
“This is what we are doing now and hapit na pud mi nahuman. Annually, si P and A come up with the Doing Business in the Philippines Guide for foreign investors. Karon they will localize it and come up with the Doing Business in Davao Guide,” Cambaya said during the Business Matters media forum at Ayala Abreeza Mall.
Cambaya explained that the guide is a comprehensive guide that can be readily accessed by Davao City’s local and foreign investors.
“Now one look at the file they will know what is in Davao City, what we have to offer, and unsa tung mga rules and regulations, unsa tung mga incentives as well as mga tax structure diri sa city,” he said.
Cambaya said they are also looking at making incentives more attractive by recommending to the city government of Davao to make business and property tax incentives up to five years from the current two to three years.
He also said that those investments that do not fall under the PIA like projects with a cap of P5 billion to P10 billion, can still enjoy the incentives.
“Examples of these investments like condominium projects, mall projects, and mixed-use developments that are currently not qualified under our incentive program because these projects, can get their revenues without even the support from the city government but recently they’ve been asking for the support from the local government because of the inflation, we might consider that putting a special provision na again if your investment is outside the PIA but if you reach that cap you can still enjoy the incentives,” Cambaya explained.
Cambaya said these are among the items that will be proposed for the inclusion of the ordinance and he is hopeful that this will be implemented this year.
Meanwhile, DCIPC is also looking at the amendment of the Public Private Partnership (PPP).
Cambaya said one of the main highlights of the PPP law is to remove the cap on the project cost that will be approved by the local government unit (LGU).
“Before katong PPP law up to P200 million lang ang approval ni mayor through Sanggunian and above that muagi pa ka ug NEDA, ICC which will take time. Karon pag amend sa PPP code regardless of the amount, naa nay power si city government to approve the PPP proposal na dili na muagi ug NEDA,” Cambaya said.
