The city government here is looking forward to more investments with the passage of “The Iloilo City Investment Incentives Code of 2025,” expanding tax privileges for new businesses in key growth areas.
The updated ordinance expands tax perks for businesses investing in designated growth areas —an effort aimed at unlocking the potential of long-idle lands and attracting large-scale developments.
Velma Jane Lao, head of the Local Economic Development and Investment Promotion (LEDIP) office of the city, said it is an opportunity for developers and owners of idle lands to develop their property.
“Giving incentives to specific lands will encourage them to develop it in whatever mode -find an investor, partner, or developer. What is important is they are able to develop the land, which, for so long, has been idle,” Lao said in an interview on Thursday.
The ordinance, authored by Councilor Jose Maria Miguel Treñas, was approved by the Sangguniang Panlungsod during its regular session on Wednesday.
The ordinance identified the Sen. Benigno S. Aquino Jr. Avenue, Iloilo Sunset Boulevard, Donato Pison Avenue, Paciencia T. Pison Avenue, and Commissioner Efrain B. Treñas Boulevard as new key growth areas in addition to the entire stretch of the circumferential, coastal, and radial roads.
The new business has at least an actual investment of PHP100 million based on the project cost approved by the Iloilo City Investment Incentives Board.
For five years, the investors will enjoy a reduction of business taxes on gross sales/receipts or realized during the preceding calendar year of 100 percent on the first two years, 75 percent on the third year, 50 percent on the fourth, and 25 percent on its fifth year.
The same schedule is set for real property tax covering infrastructure, machinery, and improvements attached to the land, and are indispensable to the trade or line of business of the enterprise.
She said they expect real property development first, which will usher in more businesses like retail and wholesale, or even commercial and industrial investments.
“It can open up a lot of opportunities. What is important is that we put businesses in our vacant lots,” Lao added. (PNA)
