The Inter-Agency Committee on Automotive Industry Development is working on the issuance of an executive order to extend the Comprehensive Automotive Resurgence Strategy (CARS) program for three years, a trade official said.
In a virtual chat with trade reporters Friday, Department of Trade and Industry Undersecretary Ceferino Rodolfo said the IAC recommends extending the time for compliance without relaxing the volume requirement.
“We are confident that an executive order on the recommendation of the IAC for the extension of the compliance period for the cars program participants will be issued before end of June of this year,” Rodolfo said.
Under the CARS program, participating carmakers have six years to comply with the minimum volume target sales of 200,000 units each for their enrolled car models for them to get their incentives.
Toyota enrolled its Vios model and Mitsubishi listed Mirage under the CARS program.
Signed in 2015, CARS program is set to expire this year.
“We, of course, do understand the challenging unforeseen circumstances including the impact of the pandemic on the automotive demand,” Rodolfo said.
He added that the government does not need to come up with a new budget even with the extension of the CARS program, as the program was crafted with notional budget, under automatic appropriations of the General Appropriations Act.
Rodolfo said participating carmakers have not yet received any of the fiscal incentives from the government.
Toyota and Mitsubishi can still enroll their investments for the modification of Vios and Mirage as long as they have not yet reached the budgeted fixed investment support for the enrolled car models, the trade executive added.*PNA