The Philippines maritime regulator Maritime Industry Authority, Marina, announced its aspiration on luring private organizations to continue engaging in shipbuilding and repair by growing a scheme for tax incentives. The incentives program is for domestic shipping in order to improve the investment climate in the Philippines and gain more private-sector participation.
According to Marina, it is committed to construct an attractive financing plan and to revise the existing incentive programs for players in the domestic shipping and shipbuilding industries.
The Maritime regulator will also proceed to
… review regulations to accelerate fleet modernization programs, as well as modernize naval ships and maritime security assets.
The Agency aims to strengthen the implementation of the Domestic Shipping Development Act of 2004, which provides to grant incentives for shipping players, as exemptions from value-added tax (VAT).
As reported by Marina, only 103 of 2.148 imported vessels from 2014 to 2017 were qualified to be given VAT exemptions, in comparison to domestic shipping policies that entitle some cases to investment incentives.
Also, priority will be given to improve shipbuilding research and development, modernization of shipyard facilities and provision of regular training for shipyard personnel.
The Regulator concluded that it will move forward to additional improvements in the industry by encouraging investment in research and development, modernizing shipyard facilities and conducting regular training for shipbuilders.
