Carmakers to ask government for tax incentives
The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) will ask the government for tax perks to boost the local car manufacturing industry.
“We will ask for fiscal and non fiscal incentives to help make the manufacturing environment at par with other countries,” CAMPI president Elizabeth H. Lee said in an interview.
According to Lee, the country must retain current manufacturing plants and introduce new models that will be assembled locally in order to spur economic activity in the country.
“We now have the market expansion program that aims to lower the cost of vehicles to make it affordable to more people,” Lee noted.
Selling cheaper vehicles, Lee explained entails lowering the cost of manufacturing which can be done be assembling cars locally instead of importing completely build up (CBUs) units from neighboring ASEAN nations like Thailand.
“We have to tell the car companies to look at the
The expansion program aims to increase the consumer base in the country in order to make it an attractive destination to more foreign car makers.
“We want to tap the C and C plus segment. We want to make vehicles available not only to the A and B which makes up only 30 percent of the society,” Lee told reporters.
According to Lee, CAMPI will ask for an Executive Order that will ease the excise tax imposed on vehicles.
Lee explained that each car manufacturer will offer one brand that will be allocated to those who otherwise cannot afford to buy a brand new vehicle. For Nissan, she said it will be the Urvan.
“This will increase the market base which is a critical factor in enticing companies to invest here,” she noted.
Lee said CAMPI has already coordinated with the Board of Investments (BOI).
“CAMPI is actively involved in laying down the groundwork, in terms of policy and regulatory framework, to prepare the local industry in facing the emerging environment and ensure industry’s growth in-step with future growth and developments,” Lee said.
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