The 10-year period prescribing incentives for the importation of shipping equipment ended in May 2014, according to the Philippine Maritime Industry Authority (Marina).
In an advisory, Marina said the value-added tax (VAT) exemption to encourage the importation of shipping equipment under Republic Act 9295, or the Domestic Shipping Act of 2004, was lifted on May 30.
Marina has ceased to endorse to the Department of Finance the following:
- VAT exemption for the import and local purchase of passenger and cargo vessels of 150 tons and above, including their engine and spare parts;
- VAT exemption for importing lifesaving equipment, safety and rescue equipment, communication and navigational safety equipment, and steel plates and other metal plates, including marine-grade aluminum plates for transport operations; and
- VAT exemption for importing capital equipment, machinery, spare parts, lifesaving and navigational equipment, and steel plates and other metal plates, including marine-grade aluminum plates for use in the construction, repair, renovation or alteration of any merchant marine vessel operated or to be operated in the domestic trade.
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