MARAWI CITY (PIA)--Member of the Parliament Ali Sangki has introduced a bill that seeks to provide halal-oriented enterprises in the Bangsamoro region with a special regional investment and incentive code.
By creating a special halal tax regime with incentives over capital gains or personal income taxes, exemptions from corporate taxes as well as port duties and taxes, and adjustments of capital allowances and losses, Parliament Bill No. 138, also known as the "Bangsamoro Halal Investment and Incentive Code Act of 2022," hopes to entice more investments into the Bangsamoro region.
A halal-friendly investment policy, according to Sangki, "could boost BARMM's bid for a share of the world halal market, which is estimated to be worth more than $4 trillion," and only the Bangsamoro region, through the Bangsamoro Board of Investment (BBOI), can provide incentives to interested firms looking to invest in new projects related to the halal industry, Islamic banking, and finance.
Once PB No. 138 is enacted, qualified enterprises may avail themselves of the halal investment and incentive scheme, which includes pioneer status and investment tax exemption.
Pioneer status is a form of tax exemption that is granted to companies that participate in or produce halal-promoted activities or services for a period of five to ten years, while the investment tax allowance is an incentive granted based on the capital expenditure incurred on industrial buildings, plants, and machinery used for halal-promoted activities or the production of halal-oriented commodities and services for a period of five to ten years.
PB No. 138 also specifies the specific activities that are eligible for the incentives, which include high-tech activity in the Halal manufacturing and services sectors, as well as other activities that directly benefit the region's economy: halal industrial parks or free zones; halal economic corridors and value chain facilities; halal banking and finance; a halal educational and technological hub; agricultural and fishery industry sectors; halal-accredited hotels; and the tourism sector.
New companies in Halal food production, existing companies doing diversification projects in Halal food production, as well as existing companies upgrading and expanding their existing plants, are also eligible to receive tax incentives.
The Special Investment and Incentive Code will be administered by the BBOI, which is an investment promotion agency of the Bangsamoro government with the authority to grant tax incentive packages to local and foreign businesses operating in the region.
"As for the 11 million Filipino Muslims in the country, the surge in halal-producing industries in the region will provide a steady source of supply of essential halal commodities, giving Muslims opportunities to fulfill their religious obligations related to the stringent requirements for food consumption," Sangki said. (BTA/PIA-10/Lanao del Sur)