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Govt. slashes tax holidays for SDPs, improves disclosure
Daily FT
|November 10, 2025
Issues Gazette trimming tax holidays from 25 years to 10
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- BOI to identify projects subject to Finance Ministry cost-benefit review
- Mandatory tax filing, disclosure of project outcomes, and ex-post monitoring introduced
- Finance Ministry to publish annual exemptions/tax expenditure reports on all SDPs
THE Government has moved to slash long-term tax concessions granted under the Strategic Development Projects (SDP) Act, with the publication of the Strategic Development Projects (Amendment) Bill, 2025 in the Gazette issued on 7 November.
The amendments seek to limit tax holidays to 10 years from the previous 25 years, strengthen oversight, and introduce transparency measures for investment-related tax expenditures.
Under the proposed law, the Board of Investment (BOI) will continue to identify projects as SDPs but must now refer each proposal to the Ministry of Finance for an ex-ante cost-benefit analysis.
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