BoI Okays Pinoy Utility Vehicle Incentives
Byline: BERNIE CAHILES-MAGKILAT
The Board of Investments (BoI) has approved the grant of incentives for the assembly of Philippine Utility Vehicle (PhUV) with a retail price of P350,000 per unit and high local content.
Trade and Industry Undersecretary Elmer C. Hernandez, who is also BoI managing head, said this would serve as an additional guidelines of the 2006 Investment Priorities Plan (IPP).
"This will develop the automotive parts making industry and provide affordable vehicles to Filipinos," Hernandez said.
Hernandez, however, the BoI did not set the local content requirement for the proposed PhUV to avoid conflict with the Trade and Investments Measures (TRIMS) agreement of the World Trade Organization.
The tripartite working group of the Philippine Auto Industry Development Working Group (PAID WG) was organized by the BoI will now submit a program.
The working group has crafted an initial qualifications for the production of a truly Filipino motor vehicle including a price ceiling of P350,000, a minimum local content of 60 percent, it should be a multi-purpose vehicle and compliant to the Clean Air Act.
At the same time, the industry would be seeking an incentives package from the government to encourage participants into the project.
Parts makers led by the Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) have been pushing for its inclusion in the government's IPP so that incentives can be granted to both assemblers and parts makers who will participate in the program.
MVPMAP is targeting a retail price of P350,000 and a local value added content of 60 percent. …