MANILA – The Fiscal Incentives Review Board (FIRB), upon the endorsement of the Subic Bay Metropolitan Authority (SBMA), has approved the grant of tax incentives to Project AGILA for the redevelopment and operations of the Hanjin shipyard in the Subic Bay freeport zone.
Finance Secretary and FIRB chairman Carlos Dominguez III supported the approval of the tax perks for Project AGILA with a total project cost of PHP17 billion as the rehabilitation of the Hanjin shipyard presents economic potential given its strategic location near the West Philippine Sea (WPS).
The project was granted special corporate income tax (SCIT), value-added tax (VAT) exemption from importation, VAT zero-rating on local purchases, and duty exemption on importation.
“We expect the project to create jobs in the adjacent communities, increase economic activity as well as support the national government’s economic recovery efforts,” Dominguez said. "The resumption of operations in the shipyard will also prompt development and productivity in the area, which can attract more investment opportunities into the country."
The project will cater to both the Philippine Navy (PN) and potential export locators.
It will be beneficial, specifically to the Navy, as it will involve the safety and efficiency of the Philippine government ships’ performance and, consequently, strengthen national security.
This project is funded by United States (US)-based private equity firm Cerberus Capital Management. (PR)