Shifting gears; gov't focuses on innovative investments

WITH the pandemic still wreaking havoc on the economy, the government is banking on the Strategic Industries Priorities Plan (SIPP) by focusing on investments that are driven by innovation.

The SIPP is the new list of economic activities that are prioritized and entitled to new tax incentive packages under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

Trade and Industry Secretary Ramon Lopez said the SIPP has to be crafted in such a way that encourages strategic innovative investments.

“We will focus on developing industries with existing and future comparative advantage, as well as integrating production system, deepening global value chain (GVC) participation, and embracing Industry 4.0 and digital transformation,” he says.

This way, the SIPP will be able to create doorways in penetrating emerging product markets through innovation.

The SIPP will be completed by January 2022, at the latest, to replace the existing Investment Priorities Plan.

Benefits include lower corporate income tax (CIT), income tax holiday incentives, and special CIT, enhanced tax deductions for expenses on training, research and development, and more.

“This digital transformation will fundamentally change the way we live, work, and do business. It is now transforming how goods and services are produced through the application of advanced manufacturing techniques, such as artificial intelligence, robotics, data analytics, Internet of Things, and 3D Printing, to boost productivity.

However, apart from transforming how goods and services are produced, it will also define, more importantly, what type of goods and services will be produced in an increasingly digital and connected world,” he said.

This is why digital and technological innovations are encouraged, especially in a society that was heavily impacted by a pandemic. (EFO)

Tags: #DepartmentOfTradeAndIndustry, #StrategicIndustriesPrioritiesPlan, #investments, #taxincentives