ABS-CBN News | Posted at 06/02/2015 1:35 PM
MANILA, Philippines – President Benigno Aquino has signed an executive order to give P4.5 billion of tax breaks to boost the local car parts industry.
The tax breaks, which will last for six years, will go to suppliers of three car models that the government will identify.
It aims to encourage investments in manufacturing parts not available in the country.
The government estimates it will create 200,000 jobs.
The program is nicknamed CARS – Comprehensive Auto Resurgence Strategy. It is part of a larger and long-awaited auto industry road map that the government is still negotiating with car assemblers like Toyota and importers like Hyundai.
The Philippines currently lags behind neighbors like Thailand in making cars and car parts.
-Mornings@ANC, June 2, 2015