The Board of Investments has flagged approximately P4.98 billion in unfunded tax payment certificates and production incentives under the government’s Comprehensive Automotive Resurgence Strategy program, raising concerns over the timely settlement of dues for automotive manufacturers.
Ceferino Rodolfo, trade undersecretary and BOI managing head, said the unpaid TPCs reflect accumulated obligations to car manufacturers and parts makers. He underscored the need to cover earned incentives to maintain the government’s policy credibility.
“These are incentives that have already been earned by investors under the CARS program, and timely settlement is important to sustaining confidence in the government’s industrial support framework,” Rodolfo said.
In a letter to Congress, the BOI requested a P3.99 billion allocation to settle the unpaid certificates, stressing that the funding is necessary to meet fiscal support commitments to the automotive sector.
Under the fiscal year 2026 National Expenditure Program, only partial funding has been provided: P225.653 million under current appropriations and P333.504 million under unprogrammed appropriations. This leaves about P3.428 billion in earned TPCs unfunded.
BOI records show that total TPCs issued and earned under the CARS program amount to about P5.43 billion, though only P1.443 billion has been funded to date. The remaining balance represents arrears accumulated over several budget cycles, including allocations from 2024 and 2025.
The BOI also noted that these figures do not include a pending P1.557 billion production volume incentive application from Toyota Motor Philippines. That application covers 38,127 units of the Vios model manufactured between September 2023 and July 15, 2024, and remains subject to approval by the inter-agency committee and the BOI board.
Including the pending Toyota application, total unfunded incentives under the CARS program amount to nearly P5 billion, the BOI clarified.
The BOI previously urged Congress to support full funding of earned TPCs to reinforce policy consistency and the government’s commitment to honoring incentive agreements with investors.
