Section 9Sec./Art. 9

Incentives for New Investments. To the extent applicable, persons with new investments as determined by the DOE and registered with the BOI in refining, storage, marketing and distribution of petroleum products, shall be extended the same incentives granted to BOI-registered enterprises engaged in a preferred area of investments pursuant to Executive Order No. 226, otherwise known as the "Omnibus Investments Code of 1987".

Such incentives shall include:

(1) Income tax holiday;

(2) Additional deduction for labor expenses;

(3) Minimum tax and duty of three percent (3%) and value-added tax (VAT) on imported capital equipment;

(4) Tax credit on domestic capital equipment;

(5) Exemption from contractor's tax;

(6) Unrestricted use of consigned equipment;

(7) Exemption from the real property tax on production equipment or machineries;

(8) Exemption from taxes and duties on imported spare parts; and

(9) Such other applicable incentives under Article 39 of Executive Order No. 226.

Any provision of the law to the contrary notwithstanding, the said incentives may be availed by persons with new investments for a period of five (5) years from registration with the BOI: Provided, however, That in the storage, marketing and distribution of petroleum products, only the investments of new industry participants shall be entitled to incentives provided in the said Code. As used herein, "marketing of petroleum products" shall include the establishment of gasoline stations.

For this purpose, the industry shall be included in the annual Investment Priorities Plan (IPP): Provided, That nothing in herein contained shall preclude qualified persons or entities as provided under the "Omnibus Investments Code" from applying from or continue enjoying incentives and benefits under the said Code.