Iloilo City: The city government is looking forward to attracting more investments with the passage of 'The Iloilo City Investment Incentives Code of 2025,' which expands tax privileges for new businesses in key growth areas.
According to Philippines News Agency, the updated ordinance enhances tax perks for businesses investing in designated growth areas, aiming to unlock the potential of long-idle lands and attract large-scale developments. Velma Jane Lao, head of the Local Economic Development and Investment Promotion (LEDIP) office of the city, highlighted the opportunity this presents for developers and landowners to transform idle properties.
"Giving incentives to specific lands will encourage them to develop it in whatever mode-find an investor, partner, or developer. What is important is they are able to develop the land, which, for so long, has been idle," Lao stated in an interview on Thursday.
The ordinance, authored by Councilor Jose Maria Miguel Tre±as, received approval from the Sangguniang Panlungsod during its regular session on Wednesday. It identifies Sen. Benigno S. Aquino Jr. Avenue, Iloilo Sunset Boulevard, Donato Pison Avenue, Paciencia T. Pison Avenue, and Commissioner Efrain B. Tre±as Boulevard as new key growth areas, along with the entire stretch of the circumferential, coastal, and radial roads.
For businesses with an actual investment of at least PHP100 million based on the project cost approved by the Iloilo City Investment Incentives Board, the ordinance offers a reduction in business taxes on gross sales/receipts for five years. This includes a 100 percent reduction for the first two years, 75 percent in the third year, 50 percent in the fourth year, and 25 percent in the fifth year. The same schedule applies to real property tax covering infrastructure, machinery, and improvements essential to the business.
Lao mentioned that the city anticipates real property development to take precedence, paving the way for more businesses such as retail, wholesale, commercial, and industrial investments. "It can open up a lot of opportunities. What is important is that we put businesses in our vacant lots," she added.