MANILA, Philippines - The Board of Investments (BOI) has wrapped up consultations with industry players for the crafting of rules to implement the Comprehensive Automotive Resurgence Strategy (CARS) program.
In a statement, the BOI said it recently met with carmakers and parts manufacturers to brief them on the features and mechanics of the CARS.
The meeting was held to get inputs of stakeholders for the program’s implementing rules and regulations (IRR) targeted for completion next month.
Among those consulted were members of the Chamber of Automotive Manufacturers of the Philippines Inc., Philippine Automotive Competitiveness Council Inc., Federation of Automobile Industry Philippines, Truck Manufacturers Association Inc. and Motor Vehicle Parts Manufacturers Association of the Philippines.
Executive Order 182 or CARS approved by President Aquino on May 29 seeks to boost local vehicle manufacturing operations through the creation of an Automotive Development Fund in the national budget to support assemblers.
The government is spending a total P27 billion for the program which will start next year, to provide fiscal support for the manufacture of three and four-wheeled motor vehicles.
The fiscal support will be in the form of tax payment certificates.
To participate in the program, a vehicle manufacturer should have a plan to produce at least 200,000 units for one model for a maximum of six years.
“The program aims to jumpstart the revitalization of the country’s automotive industry, improve its competitiveness and elevate the country into an auto manufacturing hub in the region,” BOI managing head Adrian Cristobal Jr. said.
While the BOI is working with the stakeholders on the implementation of the CARS focused on fiscal incentives, the agency also wants cooperation in undertaking non-fiscal measures under the automotive industry road map.
The automotive roadmap, crafted by industry stakeholders in partnership with the BOI, was completed last 2014.
The roadmap identifies the industry’s vision and goals as well as interventions and initiatives to achieve competitiveness.
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