The Board of Investments (BOI) is confident it can finally make a major dent in nearly P5 billion worth of unpaid auto tax credits, after the government restored funding for the Comprehensive Automotive Resurgence Strategy (CARS) Program in the proposed 2026 national budget.
BOI Managing Head Ceferino Rodolfo said the budget allocation gives the agency the fiscal space to continue issuing Tax Payment Certificates (TPCs) to program participants Toyota Motor Philippines Corp. (TMP) and Mitsubishi Motor Philippines Corp. (MMPC), as well as to their accredited parts suppliers. The move is expected to ease a backlog that has weighed on the local automotive industry for years.
At present, the BOI has P3.42 billion in pending fiscal support obligations to TMP and MMPC. This figure does not yet include TMP’s latest Production Volume Incentive (PVI) claim worth P1.557 billion, which covers 38,127 vehicles produced between September 1, 2023 and July 15, 2024. The application is still subject to review by the Inter-Agency Committee and final approval by the BOI Board.
“These amounts continue to grow as the two carmakers continue to bill the BOI,” Rodolfo said, underscoring the urgency of sustained budget support.
He stressed that no cash outlay is required to settle the obligations. Instead, the BOI issues TPCs, which manufacturers use to offset taxes on imported components and equipment. Because the appropriation is not dependent on agency savings, Rodolfo said the BOI can keep releasing TPCs without delay.
Senate documents show the BOI’s total obligation to carmakers and their suppliers has reached P4.98 billion, including TMP’s latest PVI claim. While P2 billion worth of TPCs have been issued, only P1.443 billion has been funded since 2022—leaving the bulk of the backlog still to be cleared.
With the CARS program back in the budget, the BOI is betting that relief is finally within reach.
