BOI asked to reconsider tax break on Thai livestock project

The Federation of Philippine Industries (FPI) is asking the Board of Investments (BOI) to reconsider its decision to grant tax breaks to the P2.3-billion integrated livestock project of Thai-owned Charoen Pokphand (CP), saying such move will create an “unlevel playing field.”   According to FPI chairman Jesus L. Arranza, it is not proper to grant CP’s project a pioneering status since swine and chicken production is already an area that is well-invested by big and small Filipino companies.   “If an investment area is already adequately filled up by the locals, the foreign companies should not be allowed to obtain tax incentives anymore because that will create an unlevel playing field,” Arranza said in a statement Wednesday. “How can the locals compete if the Thai company will get six years of income tax holidays and other incentives?” he added. Arranza said his group will support the local players in seeking a reversal of BOI's decision, including the legal options, particularly in questioning how the project was given a pioneer status.   The FPI president pointed out that in a consultation with stakeholders organized by the Swine Development Council last week, it came out that over P300 billion have been invested already by Filipino companies—including San Miguel Corp. and Bounty Fresh—in the industry.   BOI had said that CP's project will include parent stock farms in Tarlac and Pangasinan as well as six broiler farms in Bulacan and Nueva Ecija. The farms are expected to produce up to 21, 847 metric tons annually and will begin its operations in February 2013.   Arranza said even if agribusiness is included in the Investment Priorities Plan (IPP), the BOI should have consulted first with the Department of Agriculture before granting CP’s project a pioneer status, which qualified it to a host of fiscal and non-fiscal incentives for six years.   “We can’t understand why the BOI did not hold a prior public hearing with stakeholders and why the DA was not consulted,” he said. “How can the BOI be more knowledgeable than the DA when it comes to agriculture matters?” — KBK, GMA News