November 21, 2024 | 12:00am
MANILA, Philippines — The government is pushing for the passage of a bill that seeks to strengthen local vehicle manufacturing by providing increased support.
Speaking at the Board of Investments’ Auto Reverse Trade Fair yesterday, Cagayan de Oro Rep. Rufus Rodriguez said that while there are existing measures and initiatives for vehicle manufacturing like the inclusion of automotive manufacturing in the Strategic Investments Priority Plan and BOI’s ongoing work on the Electric Vehicle Incentive Strategy, there is opportunity for the legislature to put in place a more permanent measure that will address issues affecting the automotive industry.
Even as President Marcos signed into law the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy or CREATE MORE Act, which seeks to improve the country’s incentives system, he said this “may not be able to address concerns that are peculiar to the automotive industry.”
As such, Rodriquez said he is advocating the passage of House Bill 4206, which seeks to strengthen the competitiveness of local vehicle manufacturing.
The bill includes having a framework for fiscal and non-fiscal support covering all sub-sectors of the automotive industry from parts makers to motorcycle and vehicle manufacturers, as well as platform makers and body builders.
Rodriguez said providing more incentives and subsidies to support local manufacturing form part of the proposed measure.
“What we give in terms of money to subsidize the production cost, it will be recovered by employment and taxes that are being paid,” he said.
At present, the government provides fiscal support to vehicle manufacturers participating in the Comprehensive Automotive Resurgence Strategy program in exchange for investments to produce their enrolled vehicle model.
Rodriguez said the automotive industry, which already has significant contributions to the economy can contribute so much more with a larger production base.
Citing latest data from the Philippine Statistics Authority, he said the combined value of motor vehicle and parts manufacturing output reached P689 billion or 10 percent of total manufacturing output.
He also said the industry employs 109,808 people.
For her part, Corazon Halili-Dichosa, executive director for Industry Development Services at the BOI said the agency supports the automotive industry bill.
“We’re waiting for it. Hopefully, it gets approved,” she said.
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