Car parts manufacturers asked the government to release P2.6 billion worth of tax payment certificates for parts locally manufactured under the Comprehensive Automotive Resurgence Strategy program.
Some 10 parts makers including eight from the Philippine Parts Manufacturers Association and accredited parts makers of Toyota Motors Corp. Philippines and Mitsubishi Motors Philippines Corp., which the two registered participants to the CARS program, will receive their shares in the TPCs.
The PMMA said only 70 percent of the P2.6 billion was approved by the government.
“We hope it may be released within this quarter [third quarter]. Actually, the total incentives should be about P9 billion, but it all depends on the amount of investments by the participating car companies,” the PMMA said.
TPC refers to a non-transferrable certificate, which will be used to defray the tax and duty obligations of the participating car makers to the national government. The tax and duty obligations include excise tax, income tax, import duties and value added tax.
The group said it took a year before the CARS’s project management office finalized the claims.
“As they say, not all can be justified since there is also this big issue on double availment. For instance some parts makers may have applied for tax-free incentive from another program while they may have also filed similar claims from the CARS program,” it said.
The PMMA expects that another audit would yield better results for subsequent TPC filings.
“That is the actually the target. For the P1.2 billion for parts maker, it’s already established. The balance of P1.4 billion for parts makers of car assemblers is already audited, but not yet completely processed,” the group said.
CARS, a six-year incentives program, is in its fourth year of implementation, but was extended by another three years to allow participants to comply with the production volume required under the program of 200,000 units per participating car company.
The program offers P27 billion worth of time-bound fiscal and non-fiscal incentives for registered participants.