By Dean Aubrey Caratiquet
Three government agencies have issued a joint statement in order to clear the air surrounding the veto of the Comprehensive Automotive Resurgence Strategy (CARS) Program item in the 2026 General Appropriations Act (GAA).
This is in a bid to address false information and misconceptions on social media that cite a withdrawal of government support from the automotive industry.
In a media release on Monday, the Department of Budget and Management (DBM), Department of Trade and Industry (DTI), and the Department of Finance (DOF) noted that there are still existing budgetary items carried over from the 2025 GAA that will remain available to ensure the continuity of the CARS Program.
This will ensure that all obligations under this initiative, which supports the local manufacturing of automobiles from carmakers Toyota and Mitsubishi, as well as those of eligible manufacturers of auto parts, can be fulfilled in an orderly, lawful, and fiscally sound manner.
As such, tax payment certificates (TPCs) that were already issued and validated shall be covered by the savings in the 2025 national budget, with other requirements not included in this year’s budget up for consideration to be included in the proposed National Expenditure Program (NEP) for 2027.
The DBM, DTI, and DOF emphasized that this approach reflects a careful balance between supporting the auto industry, upholding due process, and ensuring responsible stewardship of public funds.
Budget Secretary Rolando Toledo said in a statement, “The government’s position is clear: we will not abandon the auto industry. Obligations supported by issued and validated TPCs will be paid in a legal, orderly, and responsible manner, consistent with our fiscal space and established budgetary rules.”
DTI Secretary Cristina Roque added, “The government recognizes the automotive industry’s vital role in job creation, technology development, and industrial growth. We are committed to ensuring that the incentives under the CARS Program continue to encourage investors to do business in the Philippines.”
The CARS Program, instituted by virtue of Executive Order No. 182 s. 2015, facilitates the production and manufacture of certain car models and spare parts that meet the minimum requirements enshrined in the initiative—with the products rolling out of the assembly lines exempted from the excise tax, income tax, import duties, and value added tax (VAT).
EO 182 is crafted to bolster the local manufacturing industry, generating job opportunities for Filipinos that contribute to the country’s bottomline.
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