CREBA Recommendations on the
2011 Investment Priorities Plan Guidelines
We, the members of the Chamber of Real Estate and Builders’ Associations, Inc., (CREBA) are pleased to submit our recommendations on the 2011 IPP Guidelines.
We commend the Board for its plan to retain mass housing as a priority sector in the 2011 IPP. We do have reservations, however, on its plan to put a cap on the tax exempt amount to P2M.
To our mind any attempt to downgrade the status or any of the qualifications of mass housing’s eligibility for tax incentives will defeat the very purpose for which the tax incentives were made available to developers, which is to encourage more players to undertake mass housing projects, and thus increase economic activity, mass housing being the major pump-primer of the economy. The additional taxes generated by heightened activity in the construction and real estate industries would also be good for the fiscal coffers.
We likewise recommend the simplification of the application process and fast track the processing time.
It has been the experience of developers who have availed of the tax incentives under the IPP that application process is cumbersome with a long list of requirements. We recommend that further study be made so as to find ways to simplify the application process.
The bottom line is that retaining mass housing as a priority sector will likely lead to more activity in construction and real estate, which will then redound to the benefit of both the public and private sectors. It is a move that works to the advantage of all stakeholders and, at the very least, deserves the attention and consideration of the Board.
