Marcos Jr. vetoes budgets for auto industry-related programs

MANILA: President Ferdinand Marcos Jr. has vetoed the supposed budgets for the two automotive industry-related government programs.

During a press briefing, Department of Finance Secretary Ralph Recto shared that the items that were rejected were the intended support for the Comprehensive Automotive Resurgence Strategy Comprehensive Automotive Resurgence Strategy as well as the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) programs.

The two items — which are part nearly P92.5 billion unprogrammed appropriations (UA) for this year’s budget — are meant to receive the following budget. They two have the following allocations: 

• CARS: P4.32 billion
• RACE: P250 million

Through Executive Order 182 signed by then President Benigno Aquino 3rd, the CARS program was approved to help develop the country as a regional automotive manufacturing hub.

Similarly, the RACE program is eyed to be an extra push towards industry’s competitiveness.

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In a separate briefing, Senate Finance Committee Chair Sherwin Gatchalian raised concerns about the vetoing of the pair of line items under UA.

Per Gatchalian, Mitsubishi and Toyota were promised to be paid through tax incentives — which have not been given for the past four to five years.

“May utang kasi tayo sa Mitsubishi and Toyota. Pumunta sila dito para mag-invest, ang sabi natin bibigyan namin kayo ng tax incentives. For the last four or five years, hindi natin nabibigay yung tax incentives. Umiiyak na yung Toyota and Mitsubishi. Ngayon, during the budget hearing, yung BOI [Board of Investments> nagmamakaawa na bigyan sila ng pondo para mabayaran yung Mitsubishi and Toyota dahil nakakahiya na sa mga foreign investors. (We owe money to Mitsubishi and Toyota. They came here to invest, we said we would give them tax incentives. For the last four or five years, we have not been able to give them tax incentives. Toyota and Mitsubishi are crying. Now, during the budget hearing, the BOI is begging to give them funds to pay Mitsubishi and Toyota because it is embarrassing for foreign investors), the senator noted.

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