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Monday, September 05, 2005
Mandaue lures investors with big tax incentives
MANDAUE City is boosting its efforts in attracting more foreign and local investors by giving tax incentives and simplifying the processing of business applications.
Currently, some 10,400 businesses from different sectors, such as furniture, fashion accessories and food processing, are operating in Mandaue City, a significant increase from the 9,400 businesses that registered in 2003, said City Administrator Serafin Blanco in an interview last Saturday.
Blanco told Sun.Star Cebu that Mandaue is eyeing new businesses to invest in the city, especially those from the information technology (IT) and tourism sectors.
“IT firms, like call centers and tourism-related businesses, such as hotels and restaurants, are among those that have not penetrated Mandaue yet and which we hope to accommodate,” he said.
No hotels
In his speech during the recent Mandaue Business Forum, Philippine Chamber of Commerce and Industry president Donald Dee asked why an “industrialized and fast-growing city” like Mandaue has no hotel.
Dee challenged local businessmen to come together and invest on a hotel rather than wait for foreign investors to put up one.
On the other hand, Thadeo Jovito “Jonkie” Ouano, son of Mandaue City Mayor Thadeo Ouano and a City Hall consultant, is also spearheading efforts to invite call centers to locate in the city.
He is reportedly meeting with officials of eTelecare International and People Support today to discuss possible investments in Mandaue City.
The local government of Mandaue City is providing investment incentives to industries that are going to be established in the city.
For Filipino investors, businesses with a capital investment of P5 million to P25 million are given a 25 percent discount on business taxes and real property taxes for three years.
For local businessmen who will invest P25 million to P100 million, they will get a 35 percent discount on both types of taxes for five years, while those who will put up businesses with over P100 million in capital are entitled to a 50 percent exemption on both types of taxes for seven years.
Tax holidays
For foreign investors who will set up businesses with a $200,000 to $1 million in capital investment, they will get a 25 percent discount on business taxes and real property taxes for three years.
A 35 percent discount on both types of taxes will be enjoyed by foreign investors for five years if they will bring in over $1 million to $4 million in investments and a 50 percent discount on both taxes will be enjoyed by foreign investors for seven years if they will put up businesses with over $4 million in capital investment.
To qualify for the incentives, the business firms should employ at least a 75-percent Filipino working force and residents of Mandaue City.
Blanco said the city government improved and simplified its business application system and procedures to help reduce the cost of doing business in Mandaue City.
They did this by initiating a Virtual One-Stop-Shop program, which set up electronic connections with the city’s barangay halls to the city hall for faster processing of business applications. ALC
(September 5, 2005 issue)
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