What incentives are available for new entrants in the deregulated oil industry?
Under Section 9 of the law: SEC. 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 contractors 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 Execu
