A HOUSE committee has approved a bill that will generate a development plan for domestic auto manufacturing, while providing a boost to the auto marts makers suplying it.
On Monday, the House Committee on Trade Industry approved an unnumbered substitute bill to House Bill 1833 or the proposed Philippine Motor Vehicle Manufacturing Industry Act.
“There is a motion (to approve) the substitute bill, duly seconded and there being no objection, the motion is approved,” according to Navotas City Rep. John Reynald M. Tiangco, the committee’s chairman.
The bill authorizes three-year planning for the industry, culminating in a document known as the National Motor Vehicle Manufacturing Development Plan, to be prepared by the Board of Investments (BoI).
Quezon City Rep. Jesus C. Suntay, headed of the technical working group that evaluated the bill, said the measure hopes to build up the domestic open industry to the point where it is integrated with the global auto industry.
“The objective of the bill is first to develop a comprehensive policy that will accelerate the sound development of the Philippine motor vehicle manufacturing industry thereby contributing to capital formation, technology transfer, technical skills development and employment generation,” Mr. Suntay said at the hearing.
The bill also provides for investment incentives for motor vehicle manufacturers registered with the BoI such as income tax holidays, deductions for training expenses, and the opportunity to carry over net operating losses, among others. — Gillian M. Cortez