THE Philippine government’s updated investment priority plan is targeted to be released within the fourth quarter of this year. The plan seeks to rationalize the system for granting incentives to registered businesses.
Evariste Cagatan, executive director of the Board of Investments (BOI), said on September 26 that they are “fine-tuning” the revised version of the Strategic Investment Priority Plan (SIPP) for 2025 to 2028. This will be submitted to President Marcos for approval.
During her presentation at the Arangkada Philippines Investment Forum 2025, Cagatan laid out the proposed priority activities under the enhanced investment plan.
The first tier of the fiscal incentive plan is modern basic needs, sustainability-driven industries, export activities and special laws.
The second tier includes activities related to defense and food security and industrial value chain gaps.
Meanwhile, the third tier covers science, technology and innovation-related activities as well as science, technology and innovation support facilities.
Rationalizing sectors and tiers
In January this year, BOI managing head Ceferino Rodolfo said they were revising the SIPP. The intention was to rationalize the sectors included in the plan and the tiering system for providing incentives.
“The projects identified have high impact for job creation, value creation through innovation, grading, moving up the value chain and providing essential support to sectors critical to industrial development,” Rodolfo had said.
He said earlier they will adjust the tiers and review which sectors need more incentives.
“Based on consultations, there are sectors requesting if they can be classified into the higher tiers. So, we are looking at where the law [stands on that],” he told reporters.
The SIPP is a three-year blueprint identifying priority economic activities and sectors eligible for fiscal incentives. The government’s investment priorities are classified into different tiers.
Incentives are determined whether they cater to the local market or are engaged in export-oriented activities. They also depend on the location, with businesses operating outside Metro Manila enjoying greater benefits.
Under the latest version of the SIPP, eligible businesses are given incentives lasting 24 to 27 years. These include income tax holidays and enhanced deductions. (Jordeene B. Lagare © Philippine Daily Inquirer)
