THE investments in Davao City grew by 2.2 percent in 2019 driven primarily by the services sector, data from the Davao City Investment Promotion Center (DCIPC) shows.
Based on the data provided to SunStar Davao, a total of P286 billion worth of investments were poured into the city in 2019, an increase from the P279 billion in 2018.
“We have seen the trend increasing largely because of the real estate investments and services [sector],” said DCIPC investors assistance and servicing unit head Christian Cambaya.
He said among the projects in Davao City are property developments such as condominium projects.
“The data on investments of DCIPC and Board of Investments (BOI) are those projects that have applied for incentives,” he said.
He also revealed there are three companies that are awaiting the approval of their incentives. Approval is expected to be released by the end of March.
“This year lang March, naa mi tulo kabuok applicants for approval. Duha ka agribusiness projects and one low-cost housing,” he said.
One of the agribusiness projects involves manufacturing plastic packaging for bananas for export. The other is for dressed chicken and a poultry farm.
He said another five businesses applied for incentives but are yet to be evaluated.
“Last year, wala pud mi companies nga na-approve for incentives because last year pud tong amendments namo of the incentive code and at the same time, it was an election year. Although naay nag apply pero wala pa na-approve (We have not approved incentives last year because that was the time the incentive code was amended and it was also an election year. There are those who applied last year but were not approved),” he said.
Under the amended Davao City Investment Incentive Code, new projects are exempt of business tax for a period of three years starting from the date of the first sales activity and the basic real property tax of real properties used in the registered business, excluding barangay share for two years from the effectivity or accrual of the real property tax on the new tax declaration/assessment issued by the City Assessor’s Office; or, starting from the date of the first sales activity.
For expansion projects, businesses will be granted business tax increments solely brought about by the expansion for a period of three years starting from January of the succeeding year and basi real property tax of real properties used in the registered business, excluding barangay share for two years from the effectivity or accrual of the real property tax on the new tax declaration/assessment issued by the City Assessor’s Office.
Businesses that will invest in Preferred Districts such as the districts of Calinan, Baguio, Marilog, and Paquibato, will be exempted to pay business tax for a period of five years and basic real property tax of real properties used in the registered business, excluding barangay share for five years.
DCIPC also reported that there are 41,296 registered business establishments in the city.
Of the number, 86 percent or 35,400 businesses renewed their business registration while 14 percent or 5,896 percent are new businesses.