THE Fiscal Incentives Review Board (FIRB) approved the grant of tax incentives for a proposed P10-billion cement manufacturing project in Mindanao seen to help reduce the country’s dependence on cement imports and stabilize the price and supply of the product.
Chaired by Finance Secretary Carlos G. Dominguez III, the FIRB board voted unanimously to grant the tax incentives to the project in Davao del Sur, which is estimated to produce 50.4 million cement bags per year to help meet the growing infrastructure requirements in Mindanao.
The FIRB decision followed a recommendation of the Board of Investments.
In a statement, the Department of Finance said the FIRB decided to grant a two-year income tax holiday, followed by 5 years of enhanced deductions, and duty exemption on importations of capital equipment, raw materials, spare parts, or accessories for the project, which is set to start commercial operations in July this year in Sta. Cruz, Davao del Sur.
For his part, Trade Secretary and FIRB co-chair Ramon Lopez said that approving the grant of incentives to the project will also pave the way for more jobs and business activity on top of helping achieve the country’s goal of reducing dependence on cement imports and maintaining the stability of price and supply of cement.
Finance Assistant Secretary and FIRB Secretariat head Juvy Danofrata also pointed out that the projected direct and indirect benefits from the project outweigh its projected costs, which include the foregone revenues from the tax incentives.
The project is expected to stimulate forward linkages, promote the use of energy-efficient equipment that can lead to a transfer of knowledge and improvement in productivity, especially in the underdeveloped area where the project is located.
The Corporate Recovery and Tax Incentives (CREATE) law expanded the FIRB’s powers and functions to include approval of tax incentives to registered business enterprises.
The FIRB is tasked to review and approve fiscal incentives for projects with a total investment capital of more than P1 billion, while the grant of tax incentives to those projects of P1 billion and below are delegated to investment promotion agencies.
Last year, the FIRB also granted tax incentives for the rail operations of an P81-billion subway project in Makati City that is expected to begin commercial operations in January 2026.
It also earlier granted tax incentives to P29.4 billion worth of projects outside Metro Manila, which include a mass housing development and two cement manufacturing plants.