PPI projects may also qualify for various tax incentives offered by the Government. These include:
(a) Exemption from registration tax on the acquisition of real estate for all BOT projects;
(b) Application from a 0 per cent value added tax for infrastructure facilities or construction of those facilities supplied to the State or local governments as BTO and BOT projects;
(c) Reduction of or exemption from various appropriation charges;
(d) Recognition of 8 per cent of the investment as a reserve to be treated as an expense for the purpose of computing corporate taxes.
In addition, the project company may issue infrastructure bonds with a tax rate on interest earned of only 15 per cent.