By Maya M. Padillo
The Davao City Investment and Promotion Center (DCIPC)-Incentives Board has granted real property tax exemption to FelcrisCentrale.
Opened in February this year by Felcris Hotel and Resorts Corporation, FelcrisCentrale tagged the newest hub in the city is a combination of a department store, an office/Business Process Outsourcing building and three 38-storey towers that will house high-end condominium units.
DCIPC Chief, Ivan Chin Cortez said in principle the application for incentives of FelcrisCentrale is approved pending segregation of project costs of the commercial complex and BPO buildings.
Cortez said the approved application of FelcrisCentrale is a two year exemption from real property taxes such as application for tax holidays and three year exemption from local taxes.
He said DCIPC evaluated the application then recommended it to the Davao incentives board that approved the application.
Cortez said only those companies registered with DCIPC can enjoy tax holidays.
The city’s Tax Investment Incentive Program remains a strong come on for investors since it was established many years ago to spur development in the city.
Based on the amended Implementing Rules and Regulations of the Davao City Investment Code of 1994, the program aims to encourage domestic and foreign capital to establish enterprises that would utilize substantial amount of labor, raw materials, and natural resources of the city.
It is also a policy of the city to promote the establishment and operation of non-government organizations to serve as active partners in achieving local autonomy.
City Council Committee on Finance Chair, Councilor DaniloDayanghirang told Mirror that the city was able to attract a lot of investors because of its incentive offer. He said it is a program that newly-established business, manufacturing, commercial, among others are exempted for paying business tax and real property tax for three years. The program covers an investor with an investment of more than P10 million where he is exempted for the business and property tax for three years.
“When we look at the taxes you are giving in which is a huge amount of money we will start collecting after three years. The mayor has decided through this program to give investors the chance to digest at least at the level of their expenditures on their equity on their business,” Dayanghirang said.
Dayanghirang said the incentive program has also helped improved the employment rate in the city.
“Employment rate here is a little bit okay compared to Manila. But again there are challenges that we have to face that is population growth and climate change,” he said.
Under the incentive program, the city also aims to establish a favorable and stable business climate consistent with the development needs of the city, which will encourage new investments or expansion/diversification areas Agri-business sector, Tourism and recreational facilities, Light Manufacturing and Assembly, Property Development, Health and Wellness, Educational and Sports Facilities, Environmental Protection or Green Projects, Information and Communications Technology, Production and Generation of New Sources of Energy, Transportation and Infrastructure, Public-Private Partnership (PPP) Projects, and such other preferred areas of investments as may be determined from time to time by the Board.
Giant corporations that poured in huge capital in the city include SM, Ayala, and AboitizPower’s new coal plant in Sibulan.