The chairman of the House Committee on Appropriations said businesses engaged in selling or trading goods and services that promote environmental protection and climate-change mitigation can now avail themselves of fiscal and nonfiscal incentives under Republic Act (RA) 10771, or the Philippine green jobs law.
House Appropriations Committee Chairman Karlo Alexei B. Nograles of the First District of Davao City said the Philippines is now officially a “green investment hub” following the issuance of the implementing rules and regulation (IRR) for RA 10771.
A green job is defined as a “job or employment that contributes to preserving or restoring the quality of the environment, be it in the agriculture, industry or services sector”.
Nograles, main author of the law, said the government is expecting 1 million green jobs this year. The issuance of the IRR is expected to attract sizable foreign direct investments.
He added that, with the IRR, business owners can be properly guided on the law’s implementation.
“With the IRR of the Green Jobs Act already in place, local companies should grab the opportunity to qualify for the tax incentives to be given by the Bureau of Internal Revenue and the Bureau of Customs. This means going full throttle on the generation of green jobs and services,” Nograles said.
The Department of Labor and Employment (DOLE) released the IRR via Department Order (DO) 180 on September 8.
RA 10771 further defines green jobs as “decent jobs that are productive, respect the rights of workers, deliver a fair income, provide security in the workplace and social protection for families, and promote social dialogue.”
Nograles said that, with the issuance of DO 180, companies that will qualify to be covered by the law will get special deductions in their taxable income equivalent to 50 percent of the total expenses for skills training, as well as research and development activities.
The deductions will be made from the firms’ taxable income and shall be over and above the allowable ordinary and necessary business deductions for expenses.
Moreover, they will also be exempted from paying importation tax from acquiring capital equipment that will be directly and exclusively used in promoting, generating and sustaining green jobs.
“It’s about time that companies take a proactive role in caring for the environment. The incentives offered by the law ensure that such partnership with Mother Nature is sustainable and rewarding. It’s a win-win situation,” Nograles said.