• Auto industry to hit 2018 sales target if excise tax not imposed

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    THE Philippine automotive industry is confident it can attain its 2018 sales target of 500,000 units if the proposed excise tax will not be imposed, an industry official said.

    “The industry can attain the 500,000-unit sales target by 2018 if the excise tax will not be imposed,” Joseph Bautista, Isuzu Philippines Corporation’s head of product development and resident outdoorsman, said on Thursday night during the Isuzu media party.

    Bautista explained that if the excise tax will be announced, say, in 2017, “the next year industry sales will rise and then the following year [in 2018]sales will fall.”

    Earlier, Rommel Gutierrez, Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) president, said: “There has been a sustained growth since the start of the year. We remain confident in achieving our initial target for the year with continued supply of vehicles, attractive promos and affordable financing scheme, among others.”

    “We are proud to say that all our member brands are significant players in both local and global scale,” he added.

    The Department of Finance’s (DOF) proposed excise-tax hike on automobiles may dampen the robust growth that the auto industry is enjoying and may disrupt the rollout of its flagship manufacturing stimulus program, auto industry officials earlier said.

    They noted that the government is implementing the Comprehensive Automotive Resurgence Strategy (CARS) Program in order to attract new investments, stimulate demand and effectively implement industry regulations that will revitalize the Philippine automotive industry, and develop the country as a regional automotive manufacturing hub.

    The thrust of the CARS Program is to provide time-bound, and output or performance-based fiscal support to attract strategic investments in the manufacturing of motor vehicles and parts thereof.

    Other non-fiscal measures already provided by existing laws, rules and regulations shall continue to be systematically implemented by the relevant government agencies.

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