Amendment to local investment code pushed
The city’s Local Investment and Incentives Board will be proposing an amendment to the local investment and incentives code to be able to entice more investors to do business in the city and contribute to its projected growth and development in the future.
City Budget Officer Leticia O. Clemente stated that the proposed amendment to the code will help in proving easier ways by which prospective investors will be able to transact business with the local government for them to be able to operate their respective businesses at the soonest possible time.
Earlier, the Department of the Interior and Local Government (DILG) issued Memorandum Circular (MC) No. 2020-167 on the promotion of local economic development and investment promotion (LEDIP) and the establishment of LEDIP offices or units in all provinces, cities, and municipalities.
She admitted that the aforesaid circular relatively amended the earlier guidelines presently observed by the Baguio economic and investment unit, thus, the need to immediately align the latter’s policy in consonance with the direction of national issuances.
Under the proposed amendments, the city will be renaming the Baguio economic and investment unit to local economic development and investment promotion (LEDIP) unit.
Further, the said unit shall take charge of all activities related to local government investment facilitation and promotion activities, local enterprise development, establishment of support mechanisms for the growth of micro, small and medium enterprises, provide mechanisms for business retention and expansion, and other economic activities to attract investments and generate employment.
On the other hand, she stipulated that the city is also studying to include some investment priority areas such as micro, small and medium enterprises and investment zones that will highlight developments in the identified growth nodes.
At present, the local government is granting incentives to interested investors, particularly tax privileges for business and real property taxes on a graduated basis for 5 years.
Investors are also required to pay a filing fee of 1/10 of 1 percent of the total investment cost. An annual registration fee of 1/10 of 1 percent of the total investment cost is also required from the prospective investors.
Clemente explained that the proposed amendment to the code will allow the local government to grant the investors business and real property tax exemption for 5 years on a graduated basis.
Upon approval, the applicant or investor shall be required to pay to the City Treasury Office a one-time registration fee of 1/50 of 1 percent of the total investment.
She stipulated that the proposed amendments to the code will be transmitted to the local legislative body for appropriate action once it will be passed upon by the Local Investment and Incentives Board. – Dexter A. See