Phillipines Looks to Attract Shipbuilding
The Philippines maritime regulator Maritime Industry Authority (Marina) said it wants to attract private organizations to continue engaging in shipbuilding and repair by developing a scheme of tax incentives.
Marina also said that the incentives program is crafted for domestic shipping to enhance the investment climate in the Philippines and attract more private-sector participation in the maritime industry.
“Marina has committed to formulate an attractive financing scheme and to review existing incentive programs for the players in the domestic shipping and shipbuilding industries. The agency will also review regulations to accelerate fleet modernization programs, as well as modernize naval ships and maritime security assets,” it said.
Marina is strengthening the implementation of the Domestic Shipping Development Act of 2004, which provides for the granting of incentives for shipping players, such as exemptions from value-added tax (VAT).
Marina said it found only 103 of 2,148 imported ships from 2014 to 2017 eligible for VAT exemptions, despite domestic shipping policies that entitle some cases to investment incentives.
“The enhancement of shipbuilding research and development, modernization of shipyard facilities and provision of regular training for shipyard personnel will also be prioritized,” the statement read.
Marina said it will also review regulations to accelerate fleet-modernization programs, as well as modernize naval ships and maritime security assets.
It added that it will also push for other improvements in the industry by encouraging investment in research and development, modernizing shipyard facilities and conducting regular training for shipbuilders.