Auto industry to get 3 incentives

THE auto industry will get three major types of incentives under the soon-to-be published implementing rules of the Comprehensive Motor Vehicle Development Program (CMVDP), Trade Undersecretary and Board of Investments (BOI) managing head Cristino Panlilio said.

These incentives are the tax credits for auto parts and auto assemblers that will engage in exports, income-tax holidays to be given by the BOI consistent with the Omnibus Investments Code, and the various fiscal and nonfiscal perks allowed by the Philippine Economic Zone Authority (Peza).

“The incentives will revolve around those three,” Panlilio said.

He said the new draft of the IRR will be presented in a public hearing next week, after which minor revisions will again be made based on the inputs to be generated from the different stakeholders.

The IRR, he said, will be finished on or before October 31.

While the IRR will identify the types of incentives to be given to the auto industry, Panlilio said the nitty-gritty of these perks will have to be laid down in a separate circular that will be formulated by the 13-member Auto Industry Council.

Under the CMVDP, the yet-to-be-formed council is in charge of drawing up policies for the auto industry development. It is composed of nine government officials and four representatives from the private sector.

Panlilio said the government is encouraging the auto assemblers and parts manufacturers here to engage in exports, which is why they are incorporating the tax credit and Peza incentives in the perks to be provided in the CMVDP.

Also, Panlilio said the government will give incentives to manufacturers of the Philippine-version of the Asian utility vehicles (AUV) with a minimum investment requirement of $2 million.

“It’s just a simple assembly operations for AUV for existing and new manufacturers,” he said. –WMax de Leon / Reporter, Businessmirror