THOSE who will put up parking facilities in Davao City are set enjoy longer fiscal incentives once the proposed ordinance on the establishment of such infrastructure will be passed by the City Council.
Davao City Investment Promotion Center (DCIPC) officer-in-charge Lemuel Ortonio, who was a guest in Wednesday's Habi at Kape, Abreeza Ayala Mall, said in the proposed ordinance that developers of parking facilities will enjoy a six-year exemption from the payment of business tax and basic real property tax.
Recently, DCIPC has endorsed to City Council Committee for Trade, Commerce and Industry chair councilor Jimmy Dureza an ordinance providing special tax incentive package for those who will put up parking facilities in the city.
In the current Investment Code, a three-year exemption in the payment business tax and basic real property tax is given to investments under the city's priority areas of investments, where parking facilities are not included. The proposed ordinance is different from the current Incentive Code.
Ortonio said the reason for the longer incentive period is parking facilities are not able to charge a big amount, therefore the return of investments will take longer.
Meanwhile, he said a Japanese investor has expressed interest in putting up a parking facility in the city. However, details on the potential project have yet to be given to DCIPC.
The city has been campaigning for the setting up of parking facilities in a bid to clear roads where some motorists simply park on the side.
Ortonio also said they have pre-identified locations where developers can put up a parking facility.
The enactment of the ordinance is also in preparation for the city's No Street Parking Policy.
"We cannot implement a 'No Street Parking Policy' if we do not have parking facilities," Ortonio said.