A DRAFT of the Strategic Investment Priority Plan (SIPP) retains all the priority industries listed in the 2020 plan while creating two other tiers for “green” industries and research and development (R&D) activities, among others.
The draft, which was released to the media by House Ways and Means Committee Chairman and Albay Rep. Jose Ma. Clemente S. Salceda, remains unsigned but appears to be set for implementation via executive order (EO). The draft itself that Mr. Salceda released appears to be set to go out initially as a memorandum order to be issued by the Office of the President (OP), over the signature of Executive Secretary Salvador C. Medialdea.
The latest version of SIPP will be a companion document to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law and seeks to identify the industries to which the government hopes to attract investment by offering tax incentives.
According to the draft, Tier I consists of industries included in the 2020 version of the SIPP. The 2020 SIPP was carried over as a transitional list pending the release of a new SIPP that conforms to the provisions of CREATE, which took effect in April 2021.
Tier II was defined as activities “that are supportive of a competitive and resilient economy and will fill in gaps in the Philippines’ industrial value chains, which are critical in promoting green ecosystems, ensuring a dependable health system, achieving robust self-reliance in defense systems, and transforming industrial and agricultural sectors to being modern, competitive, and resilient,” according to the draft.
Tier III will include activities which are “supportive of the acceleration of the transformation of the economy primarily through the application of research and development (R&D) and attracting technology investments.” The tie also proposes to incentivize equipment and parts manufacturing and services related to new technologies, as well as the commercialization of R&D.
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