Magsaysay tanker operator seeks tax incentives from BoI

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

25 Feb 2010

MAGSAYSAY-LED Sumilon Island Tankers, Inc. is seeking tax perks from the Board of Investments (BoI) for the operation of an oil tanker, a government notice published yesterday stated.

The firm -- a unit of Magsaysay Transport and Logistics Corp. -- wants incentives for running a “5,550-ton oil product tanker,” the BoI said in the notice.
No investment amount was specified. A second-hand tanker with a similar carrying capacity had cost San Miguel Corp.’s shipping subsidiary P733.54 million according to earlier reports.
Company officials could not be immediately reached for comment.
If the BoI approves Sumilon Island Tankers’ application, the firm could enjoy a six-year income tax holiday, among other incentives.
The state agency had approved other applications for tanker operations in the past, reasoning that government support was needed to encourage more players in the capital-intensive shipping industry. Transport activities such as these are among the preferred investments listed in the 2009 Investment Priorities Plan.
Sumilon Island Tankers is upgrading its fleet according to earlier reports after the International Maritime Organization required vessels carrying black petroleum products to be double-hulled starting April 2008.
Its parent firm, Magsaysay Transport and Logistics, also engages in domestic liner shipping, marine bunkering, fast ferry and tour operations and repairs.
Preferred projects under last year’s IPP also included projects with revenues derived from the sale of carbon credits, in line with the Kyoto Protocol; biotechnology ventures such as those for genetically modified crops; ship salvaging and towing operations; chains of homestay accommodations for tourists; film, television and theater productions and non-offshoring creative services that use information technology such as game development; and manufacture of energy-efficient lighting.

Source: BusinesWorld