D&L Industries said its wholly-owned subsidiaries, D&L Premium Foods Corp. (DLPF) and Natura Aeropack Corporation (NAC), have been granted pioneer status by the Philippine Economic Zone Authority (PEZA), extending their income tax holiday by two additional years.
Originally set to expire in 2027, the fiscal incentive will now cover the period from July 1, 2023, to June 30, 2029, giving the companies a total of six years of tax relief.
PEZA’s approval, finalized on September 25, recognizes DLPF and NAC as introducing “new and innovative” manufacturing processes strategically aligned with national development. Their operations at the Tanauan, Batangas plant feature advanced automation and sustainable practices, including a distributed control system—a first in the local production of high-value products like specialty fats and oils, coconut oil derivatives, and eco-friendly surfactants.
The distributed control system enables real-time process monitoring and automated decision-making, enhancing safety, efficiency, and product consistency while minimizing environmental impact. These innovations, D&L says, elevate its competitiveness in both domestic and international markets while aligning with global sustainability benchmarks.
After the tax break period, the companies will benefit from a 5 percent gross income tax rate under PEZA rules until December 31, 2034, in line with the CREATE MORE Act.
“This approval underscores our commitment to innovation, advanced manufacturing technology, and world-class automation systems. It reflects our long-term vision of positioning the Philippines as a hub for sustainable, high-value manufacturing that is globally competitive,” said D&L president and chief executive officer Alvin Lao.
The pioneer status strengthens D&L’s positioning as a leader in sustainable manufacturing. It not only rewards innovation but also gives D&L cost advantages that could translate into higher margins and reinvestment capacity. The move supports the Philippines’ broader push to attract green, high-tech industrial players into economic zones.
