Philippines: CP project may lose tax incentives
A proposed P 2.32 billion (€42.2 mln) livestock project by Charoen Pokphand Food (CP) in the Philippines may not receive the expected tax incentives in order to appease local producers.
The project was initially allocated pioneer status which would have given the companya 6 year income tax break. But following requests from the Federation of Philippine Industries, along with livestock and poultry groups, asked the Board of Investments to reconsider its decision.
“There was a motion from the Board of Investments to totally remove Charoen from the Investment Priority Plan for 2013, but that was not approved by Malacañang. The department then might have to remove the pioneer status and instead grant Charoen 4 year income tax holiday,” Outgoing Trade Undersecretary Cristino Panlilio said.
Panlilio said the government strongly believed the Thai company could effectively bring down the cost of pork and chicken meat to levels affordable to many Filipinos because its large production would achieve economies of scale.
CP Philippines is an export-oriented company that plans to ship out up to 60% of its output to the rest of Asia.
The Trade Department is conducting public hearings to incorporate the position of local hog raisers and poultry growers on the grant of fiscal incentives to Charoen.
