Automotive companies that are participating in the Comprehensive Automotive Resurgence Strategy (CARS) anticipate the release of some P2.6 billion incentives in the form of tax credits, according to Ferdinand Raquelsantos, president of the Philippine Parts Makers Association (PPMA).
Raquelsantos said the industry hopes to finalize this quarter the tax claims filed by 10 companies –eight parts makers and the two assemblers Toyota Motor Philippines Corp. (TMP) and Mitsubishi Motor Philippines Corp. (MMPC).
According to Raquelsantos, TMP and MMPC are to get P1.4 billion while PPMA members will receive P1.2 billion.
The companies will be issued tax payment certificates which they can use to pay for the value-added tax, duties or income tax.
CARs grants P9 billion incentives to each CARS participant of which 60 percent are based on volume and 40 percent based on how much the participant has invested under the program.
Raquelsantos said the tax claims were audited by CARS’ Project Management Office which after a year of evaluation approved only 70 percent of the amount.
The audit will ensure no double availment for those that have been declared tax free from another incentive program.
