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Friday, April 30, 2004
Mandaue’s tax perks draw investors: official
NO additional taxes as well as the implementation of the local investment incentive ordinance were among the factors cited for the rise of new businesses in Mandaue City.
At the end of 2003, there were 1,300 new business applications registered in the area, Serafin Blanco, Mandaue city administrator, said.
The furniture industry by far accounted for the largest investments registered in Mandaue, he added.
According to Blanco, with no additional taxes imposed on businesses except those required by the government, most businessmen were encouraged to do business in Mandaue.
Incentives like exemption from business and realty taxes depending on business capital exposure as well as discounts on tax rates as defined in the local investment incentive ordinance, also attracted investors to the area, he added.
The incentive ordinance, approved in January 2001, applies to new businesses with an initial capital investment of not less than P5 million for Filipino investors and not less than $200,000 for foreign investors operating after the ordinance was approved.
Filipino investors with capital investment of P5 million to P25 million get a 25 percent discount on their business tax and realty tax for three years.
For investments worth P25 million to P100 million, the discount is 35 percent for five years, while investments worth over P100 million are granted 50 percent discount on business and realty taxes for seven years.
Since the implementation of the ordinance, the application of new businesses in Mandaue City has risen from 216 new applicants in 2001, to 872 by 2002 and 1,300 by 2003.
The support extended by the City Government to new investors, like through the simplification of business permit application, has also contributed to the increase in registrations of new businesses.
Processing of business permit applications were sped up with the latest installment of City Hall’s “virtual one-stop-shop facility,” a computerized operation reducing processing time to 15 minutes.
The City is now working on enabling businessmen to view their assessments online as well as pay their taxes in their respective barangays next year, Blanco added. Lady Nice Taneo/UP Intern
(April 30, 2004 issue)
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