The Iloilo City Government greatly welcomes new business and economic enterprises. Its friendly investment policy is best illustrated by the Local Investment Incentive Ordinance, also known as Ordinance No. 280, enacted on December 7, 1988. 

Under the Ordinance, any Filipino or foreign national, and business entity investing in Iloilo City from January 1, 1989 to December 31, 1997 shall receive a number of incentives upon registration with the Local Investment Board (LIB). These incentives are in addition to what are already offered by the Department of Trade and Industry through the Board of Investments (BOI). 

Investment Requirements. Section 7 of the Ordinance lists the initial investment requirement and the corresponding incentive availment period as follows: 

Incentives. All LIB-registered companies can avail of the following incentives: 

Exemption from all kinds of business taxes imposed by Ordinance 692, series of 1975; 
Free issuance of licenses and permits; and exemption from all inspections and examination requirements of Ordinance 692, except for those authorized by the LIB. 

In Addition, an LIB-registered enterprise is allowed the free use of the city government's land for 20 years, provided that it constructs its own "infrastructure" at a "less developed area" in the city and upon the approval of the City Council. 

At the end of the 20-year period, ownership of the "infrastructure" will revert to the city government. The concerned enterprise, however, may continue with the use of the "infrastructure," provided that it pays the corresponding lot rental at a reasonable amount to be determined by the City Assessor's Office. 

Investment Priorities. Preferred investment in Iloilo City are those which concern processing and manufacturing, merchandising, tourism and other service-oriented and/or pioneering enterprises.