Philippines: Eagle Cement receives tax incentive

Eagle Cement Corp reported that two of its cement projects with a total cost of nearly PHP19bn (US$373m) have been recently approved by the Board of Investments (BOI) under the prevailing Investment Priorities Plan (IPP), which provides such business activities with fiscal and nonfiscal incentives.

The projects relate to the PHP6.5bn expansion of the company’s Bulacan plant and the PHP12.5bn production facility of its wholly-owned subsidiary South Western Cement.

In its disclosure to the Philippine Stock Exchange , Eagle Cement said the BOI approved SWCC as a "new producer of cement on a non-pioneer status but with pioneer incentives," given that the project was located in a less-developed area (LDA).

Under the current IPP, companies that invest in LDAs would be entitled to pioneer incentives, including a six-year income tax holiday and additional deduction from taxable income equivalent to 100 percent of expenses incurred in the development of necessary and major infrastructure facilities.