San Miguel unit gets tax perks

A project by San Miguel Corp.’s (SMC) shipping subsidiary to expand into the transport of fossil fuel has qualified for tax perks, the Philippine Board of Investments said. SMC Shipping and Lighterage Corp.’s Php733.54-million (US$15.4 billion) project, which will involve the operation of a secondhand oil tanker, was granted up to six years of income tax holidays and other incentives, the board said in a statement. The 5,552-ton double-hulled tanker, made in Greece in 2005, will transport petroleum products for Petron Corp. It will have to undergo the Maritime Industry Authority’s “seaworthiness tests” before operations start in November, the board said. The state agency had granted incentives to three other projects of the shipping firm for the operation of barges to transport raw materials for the parent company’s food production. San Miguel Corp. owns a 70% stake in the firm, while Kadiwa Transport Corp. holds the remaining 30%. (August 4, 2009)