Logistics locators now entitled to CREATE incentives
PASAY, PHILIPPINES — Ecozone logistics services enterprises (ELSEs) registered under the Philippine Economic Zone Authority (PEZA) can now enjoy their incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
This comes as the Department of Finance (DOF), Department of Trade and Industry (DTI), Board of Investments (BOI), and the Bureau of Internal Revenue (BIR) released a Memorandum Circular (MC) recognizing ELSEs as an eligible activity in the new Strategic Investment Priorities Plan (SIPP).
“We thank the DOF, DTI, BOI, and the BIR for finally resolving our pending concern on the recognition and eligibility of ELSEs for registration with the investment promotion agencies (IPAs) with incentives,” said PEZA Officer-in-Charge Tereso Panga.
ELSEs are traders supplying production-related raw materials and equipment that cater exclusively to the requirements of ecozone locators.
It provides critical support, mainly to export manufacturing companies with their requirements for logistics support to facilitate their import and export shipments, sourcing of raw materials, inventory management, just-in-time deliveries, localization, and process customization.
To date, PEZA has registered 340 ELSEs with total investments of Php11.154 Billion (US$203 million).
Panga added that they are hoping for a “similar clarification on the eligibility of the other ecozone locators that provide critical support to export locators such as the ecozone developers, embedded ecozone power, water, and telecommunications utilities, environmental management facilities with their inclusion in the SIPP.”
“These enterprises complete the ecosystem in the ecozones without which our RBEs cannot operate efficiently.”
