DAVAO CITY (MindaNews / 19 November) — The city government is set to introduce an enhanced package of fiscal incentives to attract more investors to Davao City once the amendment to the existing local incentive code is passed.
In an interview during the Mindanao-European Economic Roundtable Discussion (MIN-EU ECORD) at Seda Abreeza on Tuesday, Christian Cambaya, head of the Investor Assistance and Servicing Unit of the Davao City Investment Promotions Center (DCIPC), said that they are expecting the City Council of Davao to pass the proposed amendments next month, granting investors more competitive fiscal incentives.
He said the proposed amendments include a five-year exemption from business tax, a five-year exemption from real property tax, and a five-year exemption from payment of mayor’s fees and licenses.
The current fiscal incentives under the 2019 Davao City Investment Code offer only exemption of three years.
He said the local government recognized the need to improve current fiscal incentives to catch up with other local government units, such as Taguig, Cebu City, General Santos, and Cagayan de Oro, which offer better incentive packages.
“Local government units all around the country are very competitive. They’re giving enhanced incentives, so we should also be competitive. During our consultations, we found out that the business sector is actually looking for enhanced incentives, so they can recover their investments faster,” he added.
Cambaya said that incentives help investors reduce the cost of starting a business, improve cash flow, and enhance the overall viability of the investment projects, making Davao a “smart and cost-effective choice for business expansion.”
He added that non-fiscal incentives extended by the local government to business locators include business information, facilitating the processing of local permits and licenses, investment counseling and business matching, and arranging site visits.
The city government, he said, encourages investors to consider doing business in the city’s priority investment areas, such as agribusiness, tourism, technology, manufacturing, infrastructure, property development, health, education, eco-industry, and inclusive business activities.
The local government has partnered with the accounting firm Punongbayan & Araullo to review and update the investment code, as well as to provide free technical assistance to the city government’s conceptualization, design, coverage, and publication of an updated “Doing Business in Davao City” in printed and digital versions, Cambaya said.
He added that the local government is set to launch next month the “Doing Business” campaign, which will have a comprehensive guide containing, among others, information about Davao and its demographics, economic opportunities, incentives, and taxes. (Antonio L. Colina IV / MindaNews)
