Non-fiscal perks mulled for car sector

MANILA, Philippines - The government is looking at non-fiscal measures to support the growth of local vehicle assembly operations and encourage investments in the sector.

The Philippine Automotive Competitiveness Council Inc. (PACCI), in a statement, said that during the seminar on business opportunities in the Philippine manufacturing sector organized by the Nagoya Chamber of Commerce and Industry in Japan earlier this month, the Board of Investments (BOI) presented the features of the  National Automotive Manufacturing Industry Strategy (NAMIS) which seeks to help local car manufacturers to gain a healthy share of the Philippine market.

Among the non-fiscal support policy measures under the NAMIS are the implementation of the Motor Vehicle Inspection Scheme, eliminating the duplicative Certificate of Payment Requirement for the import of completely knocked-down kits to be assembled in the country, and establishing shared services like testing facilities for parts manufacturers.

“This component will help local car manufacturers quickly use their idle plant lines, taking the utilization from the current 36 percent to full capacity of 200,000 units in the next two years,” the PACCI said.

By 2016, additional capacity will be needed and fiscal measures will have to be in place to facilitate investment build-up.

Citing the BOI, the PACCI said the government is considering support in fixed investment costs for new assembly and parts manufacturing projects.

Under the NAMIS, the Philippines is expected to build a stronger presence in Southeast Asia with the country’s automotive market seen to rise to 500,000 units by 2022 from sales of approximately 180,000 units last year.