CARS program participants get fully paid next year – BOI

MANILA, Philippines — The government expects to complete the payment of obligations to participants of its car manufacturing incentive program by next year, according to the Department of Trade and Industry.

“By 2027, everything will be paid,”Trade Undersecretary and Board of Investments (BOI) managing head Ceferino Rodolfo told reporters.

He said he is currently signing the tax payment certificates (TPCs) for those who took part in the Comprehensive Automotive Resurgence Strategy (CARS) program.

“As we speak, Toyota, Mitsubishi and the parts makers are already sending it (TPCs) to BOC (Bureau of Customs) or to BIR (Bureau of Internal Revenue),” he said, noting the TPCs are used for payment of tax liabilities.

Through the CARS program launched in 2015, the government offered incentives to automotive firms that invest and produce at least 200,000 units of their enrolled vehicle model within six years.

The incentives are being provided through TPCs issued by the BOI.

Firms that took part in the CARS program are Toyota Motor Philippines Corp. and Mitsubishi Motors Philippines Corp.

Earlier this year, the government assured investors it would settle incentives promised to CARS program participants by using savings from the Department of Public Works and Highways’ budget last year as the funding source.

The government gave the assurance after President Marcos vetoed the P4.32-billion allocation for the CARS program under this year’s budget.

As the government works on the completion of the payment of incentives under the CARS program, it is also finalizing the details of the proposed Electric Vehicle Incentive Strategy (EVIS) to encourage the local manufacture of electric vehicles.

Rodolfo said the government expects the executive order and guidelines for the EVIS to be issued in the first half of the year.

Apart from Mitsubishi, he said another firm has reached out to the BOI and expressed interest to take part in the EVIS.

Earlier, Mitsubishi said it intends to join the EVIS and produce a hybrid electric vehicle model in the Philippines by mid-2028.