MANILA, Philippines–The revitalization of the local automotive manufacturing industry is expected to generate as much as 300,000 new jobs under the Comprehensive Automotive Resurgence Strategy (CARS), a program that contains fiscal and nonfiscal incentives for Philippine carmakers.
On the sidelines of a Senate hearing conducted Thursday, Trade Assistant Secretary Rafaelita M. Aldaba said the jobs, which would constitute direct and indirect employment, could be realized six years after the implementation of the CARS program.
The program, Trade Undersecretary Adrian S. Cristobal Jr., is also seen to benefit not only manufacturers and assemblers, but the motoring public as well.
“One of the components of the road map is how to stimulate demand and increase purchasing power and, on that part, one proposal given to us is to encourage or get the banks to open credit windows for first-time car owners, or possible discounts from dealers. Those are among the measures contained in the road map to stimulate demand,” Cristobal explained.
Reacting on proposals to cut the excise taxes on vehicles sold locally, Cristobal noted that the existing duties are already low at only 2 percent per P600,000.
“Down the road, we’ll see if there is a particular model that emerges that will need competitive advantage, we might consider excise tax as one of the measures to stimulate demand,” he added.
But officials remain mum on the details contained in the proposed program, particularly where the grant of incentives is concerned.
Cabinet Secretary Jose Rene D. Almendras earlier said that the Philippine government was mulling over plans to invest around $600 million (or about P26 billion) in the form of fiscal and nonfiscal support to further boost the local automotive manufacturing sector.–Amy R. Remo