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Philippines: TIEZA dangles tax perks for tourism
MANILA, Philippines — The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) is offering tax incentives for the renovation of tourism enterprises and lowering its permit fees to P1 as part of efforts to aid the recovery of the tourism sector.
In a statement, TIEZA said its board recently approved the grant of tax incentives to tourism enterprises undertaking substantial expansion or upgrade.
“There will also be tax and duty-free importation incentive for construction materials, PPE or disinfecting supplies and equipment,” TIEZA said.
TIEZA said it has also streamlined requirements for TEZ designation and registration of tourism enterprises effective June 1 so that interested enterprises could avail of fiscal incentives.
In addition, TIEZA fees will also be lowered during the recovery period.
“This lowering of the fee, approved by the TIEZA board, had taken effect,” TIEZA chief operating officer Pocholo Paragas said, adding it has already issued its first P1 permit earlier this month.
“The P1 fee is a tangible proof of our commitment to help the tourism industry recover from the reeling effects of the pandemic,”he said.
The renovation tax incentive, as well as the P1 fee, are among the efforts of the TIEZA to aid the recovery of the tourism sector through its tourism enterprise zones (TEZs).
“TIEZA will assist tourism enterprises in its jurisdiction by offering various incentives that will allow them to continue their enterprises,”Paragas said.
“We are here to help them along the way until the whole tourism industry can stand on its feet and recover and rise once more,”he said.
The tourism sector is among the hardest hit industries by the coronavirus disease 2019 or COVID-19 pandemic.
Data from the United Nations World Tourism Organization (UNWTO) shows that the global tourism industry has lost around $195 billion in receipts from January to April this year as international arrivals plunged 44 percent during the period.
On the local front, data from the Department of Tourism (DOT) show that foreign arrivals from January to May 2020 dropped 62.21 percent to 1.3 million arrivals from 3.49 million in the same period last year. This caused inbound tourism revenues to plunge 60.56 percent to P81.05 billion from P205.50 billion in the same period a year ago.
“This is an unprecedented shared challenge in our country and a massive setback for our tourism industry. Thus, we fully support and join the government in all its recovery efforts, especially for the tourism industry as jobs, livelihoods, and hospitality businesses are at stake,”Paragas said.
TIEZA earlier remitted P12 billion to the Bureau of Treasury to support the government’s fight against COVID-19. It has also opened the doors of its various properties for frontline use.
As part of recovery efforts, TIEZA’s Joint Venture Selection Committee is continuing its competitive selection for the development and operation of its assets, such as Balicasag Island Dive Resort and the Club Intramuros Golf Course.
TIEZA is also assisting in the development of private TEZs and tourism enterprises undertaking substantial expansion, renovation and upgrade in the wake of tourism’s “new normal.”
“With investment in these projects, it will not only promote the tourism potentials of these places when travel normalizes again, but also provide employment for locals, boost the economic activities in the community, and transform the place into a sustainable, crisis-proof destination,” TIEZA said.
Source: https://www.philstar.com/business/2020/06/26/2023542/tieza-dangles-tax-perks-tourism