The Overseas Shipping Service (OSS) is pushing for a legislative measure to provide incentives to the overseas shipping sector in order to meet the demand of modern global shipping.
This was raised by OSS Director Engr. Ramon Hernandez during the Focus Group Discussion conducted by the Maritime Industry Authority (MARINA) with relevant stakeholders from overseas shipping sector to tackle priority bills on September 12, 2025.
As quoted in the MARINA statement, Hernandez’s proposal calls for the introduction of clear requirements and efficient system for ship registration and reflagging. It will also ensure recognition of ship mortgages in line with international law, liability limitations for shipowners, seamless transition of inter-agency processes.
Most important, Hernandez said, the incentives will reduce the cost of doing business among others.
A group of shipowners/operators, ship management associations and other maritime stakeholders actively participated in the meeting to comprehensively discuss all provisions of Philippine International Ship Registration Bill and the Philippine International Shipping Fiscal Incentives Bill. The event served as a platform to finalize the bills, which align the interest of both public and private sector.
In August 2025, respective manifestos were signed by concerned entities during separate stakeholders’ fora to fully support the passage of bills on shipbuilding and ship repair development and ship registry.
The Shipyard Industry Fiscal Incentives Bill outlines tax perks the government could grant to local shipyard investors. These include value-added tax exemption by removing VAT costs on SBSR investments; an income tax holiday to encourage facility expansion and upgrading by temporarily lifting income tax obligations; green project incentives for environmentally friendly and sustainable shipyard practices aligned with global standards. The incentives also ensure accountability and proper use of government support.
With this incentive package, MARINA expects to unlock investments and modernize shipyards through targeted fiscal measures.
