Incentives package for car manufacturers on hold
The government has yet to decide on the incentives package for car makers, further delaying the release of rules supporting an executive fiat aimed at making the Philippines an automotive manufacturing hub in the region.
The implementing rules and regulations (IRR) for the Comprehensive Automotive Resurgence Strategy (CARS) Program was supposed to be issued in July, less than two months after Malacañang issued Executive Order No. 182.
The CARS Program calls for fiscal and nonfiscal incentives to revitalize the country’s car manufacturing industry.
Trade Secretary Gregory L. Domingo admitted they are still threshing out mechanisms on how a participating car manufacturer will be able to avail of incentives under the fixed investment support (FIS) component of the program.
The FIS is expected to comprise about 40 percent of the P27 billion worth of incentives that will be provided under the CARS Program. The remaining 60 percent of the fiscal support will be allocated for the production volume incentive (PVI).
On the sidelines of the 62nd edition of the Manila Fame Thursday night, Domingo said these are the incentives the participants can get even before they are able to produce the units. However, FIS will not apply to existing equipment, only on new capital investments whether for assembly operations or for support for parts manufacturing.
“We [are still deciding] on how the support can be divided for the big and small parts investments, and up to what extent it can be shifted from one category to another,” he said.
Nonetheless, Domingo is firm the government will not relax the criteria under the CARS Program, which requires a car manufacturer to produce 200,000 units for a single model over a six-year period.
“I’d rather not get any to register if there are really no serious players,” he said. Amy R. Remo
