TAX & FISCAL INCENTIVES GIVEN TO RIZAL VCO

Another big exporter that has qualified under the export activities of the 2017 Investment Priorities Plan has been given tax and fiscal incentives by the Board of Investments. This is the Rizal VCO Philippines Corporation, a new export producer of virgin coconut oil.

The Rizal VCO Philippines Corporation was extended tax and fiscal incentives worth P55.9 million by the Board of Investments or BOI. Rizal VCO is expected to produce up to 748,800 liters of virgin coconut oil annually in the company's plant in Bocaue, Bulacan.

The VCO project of Rizal VCO Corporation involves converting refined/bleached and deodorized coconut oil into virgin coconut oil which is a ground-breaking process in the Philippines. In this process, the refined/bleached and deodorized coconut oil if mixed with the company's proprietary mixture of herbal extracts of papaya, banana, carrot and calamansi. These will act as the catalyst that will convert the mixture into virgin coconut oil using a centrifuge separator and a filtering machine to remove the fatty content that will be formed.

The resulting VCO will initially be marketed as raw material for the manufacture of cosmetics and personal care products. It can also be marketed for topical use in health and wellness preparations and will initially be sold in the Middle East countries of Bahrain, Qatar and the United Arab Emirates.

The Philippine Statistics Authority released the figures for 2017 showing an upward trend in the Philippine coconut oil exports. For the first six months of 2017, our coconut oil exports reached US$792.3 million which is 88.2% higher in the same period last year. It is reported that the new VCO is a far more stable and prime raw material ingredient for cosmetic and personal care products. At present, virgin coconut oil is not yet extensively used for the manufacture of these products because of their low stability factor when used in large volumes for products like soaps and shampoos and creams.

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