The Board of Investments (BOI) is assessing the qualification of
Toyota Motor Philippines Corp. (TMP) to avail of the P27,000 per unit of Vios production volume incentive (PVI) under the Comprehensive Automotive Resurgence Strategy (CARS).
But Marissa Concepcion, CARS program coordinator, said it is not possible for “TMP to get the full amount as PVI is based on attainment of 100-percent localization which is unlikely.”
Concepcion said TMP has not applied for PVI credit yet but has submitted the bills of materials (BOMs) of the past 30 months that will track the level of Bios’ localization, a determinant in the amount of PVI.
Concepcion said she is hopeful the Interagency Committee on CARS and the BOI board will approve the computations on the BOMs this quarter.
Concepcion said the maximum PVI is P27,000 per unit to be given in the form of Tax Payment Certificate (TPC).
She explained the PVI is indexed on localization and is performance-based.
“The higher the level of localization, the higher the incentive,” Concepcion said, referring to the logistics efficiency index (LEI) or the percentage of local parts volume/total volume per unit.
According to Concepcion, TMP’s LEI for Vios is still under review.
“… ballpark we hope it would be more than 80 percent,” Concepcion said without elaborating.
The review involves verification that what is claimed to be local is indeed local and the high-tech parts in the Vios that cannot be localized will not be part of the LEI computation.
“Once the BOMs are accepted, the computation is done automatically by an online facility system set up for CARS. As soon as the credit is approved, the TPC is issued in real time or when needed, i.e. for taxes and duties on importation ….on average, within 24 hours from filing of request for TPC,” Concepcion explained.
The TPC can be used to pay TMP’s duties and taxes including dues for the importation of completely-knocked down parts, completely built-up units, equipment among others.
The TCP is not convertible to cash, not transferrable and cannot be sold. Irma Isip
