Quantcast
Latest Stories

Thai firm’s tax perks not OK with Palace–DA


ROSALES, Pangasinan—President Benigno Aquino has raised questions on the grant of pioneering status that allowed a Thai food company to receive a six-year tax holiday and nearly duty-free importation of equipment and materials, according to Agriculture Secretary Proceso Alcala.

Alcala, in a statement, said the President shared his concern over the Board of Investment (BOI) decision that granted Thai food firm Charoen Pokphand (CP) Foods pioneering status and tax incentives.

“The President himself raised the question of how does one define pioneering status. How can the BOI grant the Thai company pioneering status when we have been raising hogs and chickens for so long?” Alcala was quoted as saying in a statement.

Alcala, who was not consulted by the BOI, noted that the board granted pioneering status to CP only on the basis of its minimum capitalization of $200 million.

Rosendo So, Swine Development Council and Abono party-list chair, said the BOI should also have considered the P300-billion domestic meat industry in its decision.

“The domestic industry is a P300-billion industry. If you compare that to CP’s P2-billion investment, that is small,” said So in the same statement.

“For so many years, the livestock industry has not enjoyed substantial benefits from the government, and now the BOI is killing us for such a paltry sum that would benefit a foreign company,” So said.

Just as prices of locally produced meat had stabilized, backyard hog and poultry raisers raised fears that the entry of CP would displace them from the local market.

Danny Sim, a backyard hog raiser and poultry contract grower in Umingan town, said they feared the situation when CP brings its produce to wet markets.

“The prices are better now. [But if this happens], then we’re a goner,” he said.

Sim used to operate a piggery with 400 animals but was forced to downgrade his inventory to 100 animals after prices went spiraling down in the past years because of rampant meat smuggling.

So said the more important issue is the country’s food security.

Alcala admitted that with the tax holidays extended to CP, the local industry will be put at a disadvantage.

“I myself do not agree with the decision of the BOI … I am afraid it could eventually kill our domestic livestock industry,” said Alcala.

“There is nothing wrong in allowing the entry of foreign companies. But if we give perks to foreign firms, we have to give tax breaks as well to our local industry,” he said.

So said the 1,800 jobs to be generated by CP’s projects will not compensate for the 7 million Filipinos who stand to be displaced if domestic hog and poultry growers close shop.

“We are really at a loss why the BOI approved the pioneering status for CP last year when its application was denied in 2010,” So said.

Sim said local food firms like Magnolia, Monterey, Bounty Fresh and Best Options may also be affected if CP puts up canning or other processing plants for its products, which would mean they would collide head on with local producers. Yolanda Sotelo, Inquirer Northern Luzon


Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Charoen Pokphand (CP) Foods , Food , Tax Incentive , Thailand




Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
  1. Henares on Pacquiao bashing: I did not start this
  2. ‘Mom, I love you,’ says text from student on sinking ferry
  3. ‘No real progress in PH if dynasties not dismantled’
  4. Massive infra spending set
  5. More legal woes for Cedric Lee
  6. Kim Henares needs a reprimand, says Cayetano
  7. Passengers denied chance to escape sinking South Korea ferry
  8. South Korea president shouted down by distraught parents
  9. Two Popes who would be saints
  10. Lacson’s wife loses diamond earring to thieves but recovers jewelry quickly with police arrest
  1. Kim Henares needs a reprimand, says Cayetano
  2. Suspect in Vhong Navarro mauling tries to leave PH
  3. Fr. Suarez says last Mass on Easter before returning donated land to San Miguel
  4. MH370 co-pilot made mid-flight phone call – report
  5. More legal woes for Cedric Lee
  6. I’ll follow my conscience on Estrada, says JV Ejercito
  7. ‘Wife of Jesus’ theory papyrus not fake – Harvard study
  8. Gay college instructor arrested for oral sex with student
  9. ‘No real progress in PH if dynasties not dismantled’
  10. Palace: We can’t blame increase in population on Vitangcol
  1. KL confirms Malaysian Airlines Flight MH370 ended in Indian Ocean
  2. MRT passengers pass the hat for 6-year-old Ashley
  3. Pork payoffs to newscasters Erwin Tulfo, Del Prado, others bared
  4. Rookie, lady cops lauded for quick response to MOA heist
  5. Model Helena Belmonte wished ‘to slash her wrist and hope to die’
  6. Malaysia averts another air tragedy; pilot lands troubled plane safely
  7. Revilla says he was joking; Lacson stands by his story
  8. Revilla ‘consulted’ Lacson on how he evaded arrest
  9. Police rule out foul play in Helena Belmonte’s death as boyfriend is ‘traumatized’
  10. Cudia, dismissed for lying, got 99% in conduct
Advertisement

News

  • 12 dead, 96 injured in Holy Week accidents–NDRRMC
  • Filipino devotees re-enact crucifixion of Christ
  • Rouhani talks peace, outreach at army parade
  • Rains, thunderstorms on Good Friday
  • Carbon monoxide leak suffocates 20 in Catbalogan City
  • Sports

  • Ryu pitches Dodgers past Giants
  • Alonso sets the pace in Chinese GP practice
  • Heat seek Three-peat but Spurs, Pacers top seeds
  • Can Spurs get back at Heat? Can they survive West?
  • Hopkins, 49, seeks win for the ageless
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Whoopi Goldberg debuts as marijuana columnist
  • ‘X-men’ director accused of sex assault on teen boy
  • Cannes film festival launches race for 2014 Palme d’Or
  • Business

  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Barbie doll has a problem
  • Oil prices mixed ahead of long Easter weekend
  • Technology

  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Filipinos #PrayForSouthKorea
  • Taylor Swift tries video blogging, crashes into fan’s bridal shower
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • WHO warns vs spread of MERS-Cov, urges vigilance in taking precautions
  • Last call for nominations to ’14 Presidential Awards
  • San Francisco business coalition slams proposed tax on sugary drinks
  • A ‘time-travel’ production of ‘Les Miserable’ at Stanford
  • Filipina Maryknoll sister honored for years of service
  • Marketplace
    Advertisement