The Board of Investments (BOI) has discounted the possibility of opening the third slot of the Comprehensive Automotive Resurgence Strategy (CARS) to a new applicant even as it has yet to finalize the extension of the program for the existing participants.
Ceferino Rodolfo, BOI managing head, told reporters in a briefing the agency will set a condition for the three-year extension being sought by Toyota Motor Philippines Corp. for Vios and Mitsubishi Motor Philippines Corp. for Mirage.
But Rodolfo said the government will not increase the P27-billion budget allotted for CARS.
“We have yet to know how much longer we need to extend. We have to know (what we can get) in return.
What is the value add? What other model can be included?,” Rodolfo said without elaborating.
He added: “We recognize the impact of the pandemic on the automotive industry and they (CARS participants) have complied with their commitments (but) the volumes were affected due to market downturn.
The design of CARS is to protect government as (the incentive scheme) is performance and volume-based.”
Rodolfo said the BOI is working with industry on the extension except that “questions were raised where to anchor that particular extension” since a new tax regime is now in place, the Corporate Recovery and Tax Incentives for Enterprises.
He said should the third slot be opened, it should be consistent with the Electric Vehicle Industry Development Act which mandates the formulation of an EV incentive scheme like CARS. – Irma Isip
