THE Board of Investments (BoI) said it is seeing increased investor interest in agriculture, after investment promotion agencies (IPAs) were empowered to approve projects with higher investment thresholds.
In a statement over the weekend, the BoI said the higher thresholds at IPA level approved by the Fiscal Incentives Review Board (FIRB) helped stimulate interest in farming projects.
On Feb. 2, the FIRB, through Resolution No. 003-24, increased the threshold to P15 billion and below from the previous P1 billion and below.
Since then, the BoI has approved six agriculture projects valued at P13.38 billion.
Agriculture attracted the most investment with P6.05 billion, while the transportation and storage industry drew P3.95 billion, the BoI said.
The approved investments include the registration of a new producer of processed chicken, a dairy farm, and a cold-storage facility.
“Recent approvals with investments ranging from P1 billion to P15 billion highlight the benefits of increased investment thresholds for the agriculture sector,” Trade Secretary and BoI Chairman Alfredo E. Pascual said.
“These projects, upon completion, will drive the adoption of new technologies and strengthen food security. This is crucial to meet the rising food demand and sustain resilient agricultural systems despite climate change and other challenges,” he added.
Since the Corporate Recovery and Tax Incentives for Enterprises law was implemented in 2021, the FIRB has approved 28 projects valued between P1 billion and P15 billion, valued at a combined P126.61 billion.
Meanwhile, the FIRB approved 15 projects involving over P15 billion in investment, amounting to P835.89 billion.
“This increased project cost threshold for IPA approval affirms the government’s push to streamline business processes and manage incentives prudently,” Mr. Pascual said. — Justine Irish D. Tabile
