SMC gets tax breaks for airport

Food-to-infrastructure conglomerate San Miguel Corp. (SMC) has been granted tax breaks for its massive airport project in Bulacan.

The House committee on ways and means approved yesterday the tax provisions of a proposed legislative franchise that would pave the way for SMC to build and operate a 2,500-hectare “Airport City” in Bulakan town.

SMC president and COO Ramon Ang said construction is set to start in October, slightly delayed due to the quarantine measures that started last March.

The construction of the airport, with an estimated project cost of $15 billion, will enjoy the approved tax exemptions for SMC over the next 10 years.

Voting 25-2, the House committee approved tax provisions which include exemptions from the payment of all direct and indirect taxes as well as fees “which emanate exclusively from the construction, development, establishment and operation” of the facility, to be named New Manila International Airport, and its commercial complex.

The exemptions cover income taxes, value-added taxes, percentage taxes, excise taxes, documentary stamp taxes, customs duties and tariffs.

Property taxes on land, buildings and personal property will also be excluded.

The tax break, an incentive for the flagship infrastructure project, applies to the 10-year construction period given to the conglomerate to build the airport, which Ang said would be a world-class airport.

Despite the negative impact of the COVID-19 pandemic on the economy, Ang said the airport project would continue as well as all of SMC’s other infrastructure projects.

“All our major, important projects will continue. Before the pandemic, and even more so now, we believe these projects will be key to making more Filipinos resilient, by providing jobs and boosting local economies which, in turn, will provide livelihood opportunities,” Ang said. — Delon Porcalla

By: Iris Gonzales (The Philippine Star )

Source: Peso Economics