The Board of Investments (BoI) said it has the power to impose “buy local” rules on incentive seekers under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
In a newspaper notice, the BoI said its powers derive from amendments approved by its board to the general policies of the 2022 Strategic Investment Priority Plan (SIPP) governing the use of Philippine products by project pro-ponents applying for incentives under CREATE.
Citing Section 301 of the CREATE Act, the BoI said the amendments empower the agency to impose such conditions, in order to develop domestic supply chains servicing incentive-seekers’ projects.
“(These include) purchase of critical parts and components that are domestically available in sufficient quantity, comparable quality, or at reasonable prices,” according to the memorandum circular (MC No. 2024-001) issued alongside the newspaper notice.
Section 301 of the CREATE Act authorizes the government to modify the mix, period, or manner of availment of incentives.
The MC outlining the buy-local rules takes effect immediately. The MC was signed on April 16.
Section 300 of the CREATE Act requires projects or activities seeking incentives to comply with requirements or conditions set by the BoI and the Fiscal Incentives Review Board.
The 2022 SIPP was approved by former President Rodrigo R. Duterte. The plan identifies priority industries for which the government hopes to attract investment via the offer of offering tax incentives. — Justine Irish D. Tabile
