Trans-Asia Shipping tax perks to keep costs in check

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Trans-Asia Shipping Lines
Navigation bridge of Trans-Asia 21. Photo from Trans-Asia Shipping Lines.
  • Tax incentives granted to Trans-Asia Shipping Lines will help the company cut cash operating costs
  • The perks are tied to the operation of roll on-roll off passenger vessel, MV Trans-Asia 21
  • MV Trans-Asia 21 is the biggest brand-new roro passenger vessel in the Philippines
  • It is deployed on the Cebu-Cagayan de Oro-Cebu route

Tax incentives recently granted to Trans-Asia Shipping Lines will help the company reduce cash operating costs while focusing on increasing revenues, said Chryss Alfonsus V. Damuy, president and CEO of Chelsea Logistics and Infrastructure Holdings Corp.

The Fiscal Incentives Review Board (FIRB) approved the tax perks of Trans-Asia, a subsidiary of Chelsea Logistics, following Board of Investments approval of the company’s application for registration as a new domestic shipping operator under Republic Act 11534 (Corporate Recovery and Tax Incentives for Enterprises Law) and Preferred Activities of the 2020 Investment Priorities Plan (transitional Strategic Investment Priority Plan).

The incentives are tied to the operation of roll on-roll off passenger vessel, MV Trans-Asia 21.

READ: Trans-Asia Shipping gets tax perks for P1.5B vessel

Incentives include a four-year income tax holiday, five-year enhanced deductions, and 11-year duty exemption on importation of capital equipment, raw materials, spare parts or accessories, from the date of registration

“We are certain that the temporary tax-break periods will help the company generate more taxable revenue for the government over the long term by maintaining and growing our business during the tax holiday,” said Damuy in a media statement.

He said the group will continue to invest in facilities and amenities onboard its ships to offer Filipinos comfort and safe sea travel.

Delivered in May 2021, Japan-made MV Trans-Asia 21 is the biggest brand-new roro passenger vessel in the Philippines plying the Cebu-Cagayan de Oro-Cebu route. The company said the vessel, its 15th, is the most energy-efficient ship of its class. It measures 123 meters long and has a gross registered tonnage of approximately 8,800 tons. It can carry 1,051 passengers and accommodate 10’ and 20’ container vans, 20’ plugged-in reefer vans, buses, 10-wheeler trucks and heavy equipment units.

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