The government is aiming to fully settle its remaining obligations under the Comprehensive Automotive Resurgence Strategy (CARS) Program by 2027, according to Ceferino Rodolfo, managing head of the Board of Investments.
While Rodolfo declined to disclose the exact amount, officials familiar with the discussions said total payouts could range from P4.9 billion to P5.2 billion.
Beneficiaries include Toyota Motor Philippines Corp and Mitsubishi Motors Philippines Corp, along with their parts suppliers tied to CARS-covered models such as the Vios and Mirage.
Rodolfo confirmed he has signed the issuance of Tax Credit Certificates (TCCs) for participating carmakers and parts manufacturers, marking the start of the program’s payout phase. These certificates allow firms to offset tax liabilities, offering a non-cash mechanism to realize incentives.
A key funding source will come from savings of the Department of Public Works and Highways, coursed through the Department of Budget and Management. The funds are intended to bridge gaps left by missing allocations in the 2026 national budget.
However, Rodolfo noted that only Toyota is expected to fully maximize the incentives, as Mitsubishi failed to meet the program’s 100,000-unit production requirement.
The BOI will honor validated and complete submissions, with a firm cutoff planned for pending claims. “At a certain point, we need to cut off what is submitted,” Rodolfo said, underscoring the push to finalize obligations.
Any remaining liabilities will be incorporated into the 2027 national budget, paving the way for the program’s financial closure.
