MANILA, Philippines - The Department of Trade and Industry (DTI) is fasttracking the approval of the proposed amendment to the Motor Vehicle Development Plan (MVDP) as it has forwarded the proposal to Malacanang last week.
“I signed it last week and we have already forwarded it to Malacañang,” outgoing Trade Secretary Peter B. Favila said in an interview.
The auto industry is asking the government to provide more incentive packages in order to promote the exports of vehicles, a move that will boost local manufacturing and encourage more investments.
In a letter to Board of Investments (BOI) managing head Elmer C. Hernandez, the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) said the government can promote exporting activity by means of such incentives package like automated export processing, single window system, elimination of export fees, provision for gestation period for start-up export program, among others.
However, Hernandez explained they cannot give what the private sector is asking for because they cannot put specific provisions regarding the excise tax as it is not within their powers.
Hernandez pointed out only Congress can provide a more concrete tax exemption scheme for the automotive industry. “We can’t do that. We can’t set the excise tax. The government is revising its MVDP in order to help the automotive industry expand in the country and be at par with our ASEAN neighbors like Thailand which has a thriving automotive industry.”