Toyota Motor Philippines (TMP) said it is processing its availment of an estimated P2.7 billion in tax incentives for the more than 100,000 unit production of Vios under the Comprehensive Automotive Resurgences Strategy (CARS) program.

TMP Vice-President Rommel Gutierrez said they are still coordinating with the Board of Investments (BOI) on the mechanics for application of tax payment certificate. Gutierrez said that “mathematically” the tax incentive is P2.7 billion.

The fiscal support will come in the form of tax payment certificates. Program participants can use the certificates in offsetting their tax and duty obligations to the government, specifically excise tax, income tax, import duties and value-added tax.

As of October 2021, TMP has already produced more than 100,000-unit sales level for Vios model, making the company eligible for the Production Volume Incentive (PVI) under the program.

Under the CARS program, the PVI represents the production volume for parts and vehicles. The program, which is administered by the BOI, mandates a participant to produce a minimum production goal of 200,000 units for a maximum of six years or the life span of the particular car model.

The program is limited to three vehicle models, with each model to get a total fiscal support of P9 billion. The P9-billion support includes all the incentives that will be availed of by the parts makers, shared services providers and the vehicle assembler.

The PVI accounts for 60 percent or P5.4 billion of the total P9-billion incentives per participant that has achieved 200,000 unit volume production level. With the production of 100,000 units of its enrolled model Vios, TMP would be entitled half or P2.7 billion of the P5.4 billion PVI incentives in the form of tax payment certificate.

TMP, one of two CARS program participant, the other being Mitsubishi Motors Philippines, is producing Vios at its Sta. Rosa, Laguna manufacturing complex.

As part of a disclosure submitted by GT Capital Holdings Inc. to the Philippine Stock Exchange on Tuesday, March 29 on its consolidated income for 2021, the conglomerate stated that its automotive unit TMP booked consolidated revenues of P131.3 billion in 2021, from P99.8 billion in 2020, representing a 32 percent growth. TMP’s consolidated net income reached P6.2 billion during the period, from P3.4 billion in 2020, registering a hefty 82 percent growth.

Toyota outpaced the market with vehicle retail sales of 129,667 units in 2021 from 100,019 units in 2020, a 30 percent increase.