This was raised in yesterday's press conference for the holding of the Philippine Boatshow & Nautical Lifestlyle Expo and Conference (SEA-EX) on Feb. 20-22 in Manila spearheaded by Headsail Inc. and the European Chamber of Commerce of the Philippines.

Headsail President Angelo Olondriz said that imported boats are slapped with 100 percent to 150 percent percent tax because they are considered luxury items.

"Leisure or small boats are taxed heavily here in the country because they are considered luxury items," Olondriz said. 

Olondriz explained that in an archipelago country like Philippines, which 7,100 islands, boats are a necessity, not a luxury. 

Olondriz cited the case of Thailand, which lifted its taxes on water crafts in 2004 for a period of 10 years to help develop its marina industry. From only two boat-builders, there are now 70 to 80 boatbuilders in Thailand producing 6,000 boats last year for export and local markets. Thailand has only over a thousand islands.

On the contrary, the Philippines despite being the world's third longest coastline and over 7,100 islands have only less than 30 boat-builders in the country with an estimated value of only $10 million only.

The support industry for the boat industry in the US alone is place at $7 billion.

"But Asia is the next hub for boat building and marina industry. If we can only get a small portion of that huge support industry that is already huge," he added.

Architect Jun Palafox has also called for government to implement a tax-free importation of all water crafts.

Paladox stressed that the boating and marina industry is a huge tourism growth driver. But more than that is also inclusive because it is labor intensive and Filipinos have the skills to build boats.

Palafox said that water-based lands are 50 percent more expensive than the normal real estate. That is why marinas are sprouting all over the world. Besides it is more environment-friendly to build on waters.

Aside from the tax issue, ECCP Vice-President Martial Beck noted of the need to amend the country's antiquated laws particularly the Cabotage Law.

"It is cheaper to ship from Singapore to Davao than Manila to Davao," he said. 

The upcoming boatbuilding expo is expected to gather 100 exhibitors including foreign and locals and 5,000 visitors.

Source: Manila Bulletin