THE Philippine government is planning to give income-tax holidays (ITH) and eliminate tariffs, ensuring that prices of construction materials—particularly cement and steel products—will be maintained.

A trade official said the Board of Investments (BOI) and the interagency Committee on Tariff and Related Matters (CTRM) are currently drafting mechanisms to undertake these initiatives in support of the government’s infrastructure program and sustain the private-sector initiated boom in the construction industry.

According to the official, the trigger mechanism for the removal of cement tariffs which was earlier scrapped by the CTRM is being reconsidered.

“The option for the removal of cement tariff is still open,” the source said.

The Tariff Commission, a member of the CTRM, has already given its endorsement for establishing a trigger mechanism for the seasonal removal of cement tariffs.

After conducting a public hearing last year, the commission deemed that removing cement duties every time prices go up will be beneficial for consumers since it will promote better competition among local and imported brands.

Besides tariff removal, the trade official said the BOI is also thinking of including cement manufacturing in the list of activities eligible for ITH in the Investment Priorities Plan.

“Cement can qualify under both the mining and strategic industries,” the official said, adding that new players in the cement industry will trigger more competition and supply that will result in lower prices.

The source also said the BOI will be giving tax holidays and other perks to the production of billet products and its downstream industries, such as the manufacturers of reinforcement bars and nails, among others.

Currently, the grant of ITH is limited to the production of flat products.

The source also said that local production of steel goods needs to be given a boost, especially with the continued huge consumption of steel in China and India, forcing prices to climb.

Currently, the official said the government is studying conditions to ensure that perks given to companies will translate into reduced prices.

“The government is really serious in addressing the need to bring down the cost of construction materials for the benefit of the private sector and to support the administration’s infrastructure program,” the source said.

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THE Philippine government is planning to give income-tax holidays (ITH) and eliminate tariffs, ensuring that prices of construction materials—particularly cement and steel products—will be maintained.

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