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Slew of incentives & tax breaks to lure FDI in T&C sector

04
Dec '08

Philippines though not having a very big garment and textile industry compared to its other illustrious neighbours like Indonesia, Sri Lanka and Bangladesh etc, the sector is quite vibrant but with modest export growth rates. Now in order to counter the reduced inflow of foreign investments in the sector due to the economic meltdown, the government has announced various incentives and tax breaks to attract investments.

From among the main measures announced by the government is allowing duty free import of textile machinery for those foreign investors who are interested in setting up textile and garment units in a special zone near the capital, Manila. The proposed hub is located in Clark, a former base of US armed forces, north of the capital city. The government is contemplating setting up of a textiles and garments park at the location.

A lot of companies from the sector are intending to shift their operations from China, Hong Kong and Taiwan and Philippines wants to attract them to this location by providing incentives and tax breaks. This incentive is meant for those companies who had proposed investing, but have postponed their plans due to the ongoing global crisis. Foreign direct investments in the country have fallen by 56 percent in the first eight months of the current year compared to the same period of the previous year.

Fibre2fashion News Desk - India

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