DTI readies perks for key sectors
THE DEPARTMENT of Trade and Industry is preparing incentive packages aimed at accelerating the growth of high-impact industries like shipbuilding and aerospace.
Such packages will likely be similar to the Comprehensive Automotive Resurgence Strategy (CARS) program, under which P27 billion in incentives were made available to qualified assemblers to boost the automotive and parts manufacturing industries, explained Trade Secretary Adrian S. Cristobal Jr.
Under Executive Order 182, the CARS program will provide fiscal and non-fiscal incentives for assemblers that can produce 200,000 units of a single model over a six-year period.
If successful, the CARS program is expected to attract more than P27 billion in new parts manufacturing investments; produce at least 600,000 vehicles; generate some 200,000 new jobs; and generate a total economic activity estimated to be worth P300 billion. The resulting contribution to gross domestic product was estimated at about 1.7 percent.
In an interview with the Inquirer, Cristobal said the DTI was looking at other sectors that may warrant a similar incentive program, including shipbuilding and aerospace.
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