Packaging companies get tax breaks

The Board of Investments (BOI) allowed two packaging companies to enjoy tax breaks for projects involving the production of corrugated boxes. Davao Fibreboard Packaging Plant Inc., which produces 24 million corrugated boxes a year, has been allowed to forego income tax payments for a certain period after it unveiled plans to put up a plant. Worth P232 million, the plant will be located in an 18,000 square meter property in Sasa, Davao City. The facility will produce corrugated carton boxes for its customers, mainly regional banana exporters whose markets include Japan, Korea, China, and Middle Eastern countries. Bulk of project funds will be allotted to acquire corrugators and flexo folder gluer, among others. Another packaging company, Allied Pacific Packaging Solutions Corp., will also enjoy similar tax incentives, the BOI said. The P18.5 million project involves the production of 13.3 million high-quality corrugated boxes a year, 90 percent of which are used by exporters that run customs bonded warehouses. Boxes to be produced will come in various sizes depending on the requirements of the company’s customers. These include Philbest Canning Corp., Celebes Canning Corp., Seatrade Canning Corp., and General Tuna Canning Corp. The company’s other clients include Dole Food Co. Inc. and Del Monte Foods. - GMANews.TV