Gov’t to roll out incentives program for auto firms

Rappler.com

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Gov’t to roll out incentives program for auto firms
Car and car parts manufacturers in the country can begin applying for the CARS program on January 15

MANILA, Philippines – The Board of Investments (BOI) is set to accept applications for the Comprehensive Automotive Resurgence Strategy (CARS) program, which offers incentives for firms in the auto industry.

Car and car parts manufacturers eligible for the program have 60 days upon publication of the CARS memorandum circular to submit their applications. The memorandum circular announcing the opening of applications is set to be published on Friday, January 15.  

The applications will then be evaluated within one month by representatives from the departments of Finance, Transportation and Communications, Science and Technology; Technical Education and Skills Development Authority; the Industry Development Council; and the National Competitiveness Council.

Board decisions are expected to be announced before June 2016.

“The opening of applications a week earlier than the mandated schedule augurs well for the CARS program. We are especially enthusiastic for small and medium enterprises (SMEs) in the car parts manufacturing sector that stand to benefit from the program,” Department of Trade and Industry (DTI) Undersecretary and BOI Managing Head Ceferino Rodolfo said.

The CARS program, which was signed into law by President Benigno Aquino III in May 2015, provides fiscal support for investments in the manufacture of whole body large plastic parts and other strategic parts that are not currently produced locally. 

It also offers variable incentives to induce both volume production and logistics efficiency.

According to the BOI, local car parts makers – majority of them SMEs – have expressed full support for the CARS program, saying that the annual target production of 100,000 vehicles doubles the current completely knocked down (CKD) assemblies.

Stakeholders in the industry are also hoping that the program will eventually lead to  the creation of complementing industries down the line. 

Some 70,000 personnel are currently employed by local parts makers. – Rappler.com

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