The expansion of Japan-backed Yazaki-Torres Manufacturing Inc.’s facility in Calamba, Laguna, which manufactures car parts for exports, has been granted tax incentives, according to the Philippine Economic Zone Authority (Peza).
In a statement, Peza said it granted its supplemental approval to declare the new project at Yazaki-Torres’ YTMI Realty Especial Economic Zone as an economic export enterprise.
The new project will involve the manufacturing and exportation of “new kinds of automotive low tension wires,” the Peza statement said.
Yazaki-Torres makes wiring harnesses, automobile instruments, battery cables and other automotive parts at its facility in Calamba. Yazaki-Torres is 60 percent-owned by Filipino shareholders while the rest is owned by Japan’s Yazaki group.
Tax perks are given to foreign firms by Peza as part of government efforts to attract investments, create new direct jobs and promote support industries. There are about 270 economic zones operating in the country today, Peza records showed.
Companies in economic zones enjoy various tax breaks, including income tax holidays, duty-free importation of raw materials as well as non-fiscal incentives.
Two Yazaki-Torres subsidiaries—Yazaki-Torres Parts Manufacturing Inc. and YTM Component Inc.—also have plants in Laguna, while another, YTP-Lima Manufacturing Inc., has a separate facility in Lipa, Batangas.