After granting incentives to the P151-billion project of Converge ICT Solutions Inc. owned by businessman Dennis Antony Uy, the government has extended tax perks to the projects of three more telecommunications provider.
Upon the recommendation of the Board of Investments (BOI), the Fiscal Incentives Review Board (FIRB) has approved the tax incentives applications of telecommunication tower companies SkyTowers Infra Inc., Frontier Tower Associates Philippines Inc. and Transcend Towers Infrastructure Philippines Inc.
Having a combined total project cost of P78.2 billion, the three telcos were granted by the FIRB with the same incentives package given Converge, but on condition that all of their towers will be built and located in areas that now lack service.
FIRB Secretariat head and Finance assistant secretary Juvy Danofrata said that the projects would lead to improved internet connectivity in the country.
“The approval of these projects is urgent, given the current gap in the number of towers needed to service our population,” said. “We are optimistic that these approved applications will pave the way for our country to finally have improved connectivity and more quality service,” Danofrata said.
The multi billion-peso project of Converge involves the nationwide rollout of fiber optic network for high-speed broadband services interconnecting the country from Luzon to Mindanao.
The fiber broadband rollout project was granted four years of income tax holiday (ITH), followed by five years of enhanced deductions, and 11 years of duty exemption on importations of capital equipment, raw materials, spare parts or accessories from the date of registration, unless otherwise extended in the Strategic Investment Priority Plan (SIPP).
The SIPP will determine the priority industries, projects, and activities that can be granted fiscal incentives by the government under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
Through this project, Converge is expected to fulfill its performance commitments such as providing better and cheaper internet access in the country’s unserved and underserved communities, and strengthening interconnectivity in these areas where the connection is normally slow and unsteady.
“We expect Converge to deliver on its performance commitment of faster and cheaper Internet access in remote localities as this will not only address our pain points with regard to connectivity but also provide more employment opportunities to our people in rural areas,” Finance Secretary and FIRB chairman Carlos Dominguez III said.