CARS perks balance released this year – BOI

MANILA, Philippines —  The Board of Investments (BOI) expects funding for the remaining tax payment certificates (TPCs) for the Comprehensive Automotive Resurgence Strategy (CARS) program’s participants to be released this year.

“In 2026, it will be done,” BOI managing head and Trade Undersecretary Ceferino Rodolfo told reporters.

Under the CARS program, the government promised fiscal support to participating firms that invest and produce at least 200,000 units of their enrolled vehicle model within six years.

The incentives are provided through TPCs issued by the BOI.

Participating car manufacturers and parts makers can use the TPCs for taxes and duties on their imports.

While the government has already paid P1.44 billion worth of incentives that correspond to TPCs, it has yet to settle the balance of P3.99 billion for TPCs earned by participating car manufacturers and parts makers.

Earlier, the BOI wrote to Sen. Sherwin Gatchalian, seeking his support to ensure the inclusion of the funding needed to fulfill the government’s obligations under the CARS program in the 2026 budget.

For the BOI, it is crucial to fulfill the government’s obligation under the CARS program to avoid the risk of eroding investor confidence and undermining the development of the automotive sector.

Launched in 2015, the CARS program aimed to revitalize the Philippine automotive industry by offering incentives to attract investments in vehicle manufacturing.

Car makers that took part in the CARS program are Toyota Motor Philippines Corp., which enrolled the Vios and Mitsubishi Motors Philippines Corp. for the Mirage.

Earlier, the government said it is coming up with a new vehicle manufacturing incentives program called Revitalizing the Automotive Industry for Competitiveness Enhancement to support the domestic production of four-wheeled internal combustion engine vehicle models.

The government also plans to implement the Electric Vehicle Incentive Strategy to encourage the local production of electric vehicles, batteries, motors and components, as well the deployment of charging stations and testing facilities.