BIR: Collections From E-Payments Exceed PHP2 Trillion

BIR reports e-payment collections above PHP2 trillion. Filipinos are increasingly relying on digital tax services.

Baguio’s Garbage Down As Residents Practice Proper Waste Management

Together we can achieve more. Residents' dedication to waste management has reduced garbage generation in Baguio significantly.

German Cruise Tourists Make Stop In Leyte’s Kalanggaman Island

Eastern Visayas is thrilled to host 490 German tourists visiting Kalanggaman Island in Leyte.

Laoag City Developing Farm Sites For Tourism

New farm tourism experiences are being developed in Laoag City to enrich visitors' stays.

Parts Makers Bat For Mandatory 30% Local Content For Philippine-Made Vehicles

Support growing for a 30% local sourcing requirement from manufacturers for vehicles in the country.
By PAGEONE Business Today

Parts Makers Bat For Mandatory 30% Local Content For Philippine-Made Vehicles

9
9

How do you feel about this story?

Like
Love
Haha
Wow
Sad
Angry

Local manufacturers of automotive parts are proposing a 30-percent mandatory domestic sourcing for vehicles assembled in the country.

In a statement Tuesday, Philippine Parts Makers Association (PPMA) president Ferdi Raquelsantos said the government could provide tax perks for vehicle assemblers that will comply with the minimum requirement for local sourcing to boost the production of auto parts makers.

Sourcing the auto parts from local manufacturers could attract fresh investments of USD500 million and create additional 50,000 jobs in the auto parts manufacturing sector, Raquelsantos said.

“By implementing a robust local content rule, we can create a sustainable ecosystem for our parts manufacturers, generate employment, and reduce our reliance on imports,” he said.

Increasing the local auto parts sourcing would translate to an import substitution of USD2.5 billion. Currently, the amount is the country’s auto parts’ import bill annually, he added.

Raquelsantos said the current level of local sourcing of vehicle assemblers stood at 20 percent, below Vietnam’s policy of 40 to 50 percent domestic content for vehicle production.

Auto parts makers also contribute around USD1.2 billion to the economy.

“We have the talent, the technology, and the capability. What we need is a clear policy framework that incentivizes automakers to source locally and supports our manufacturers in meeting global standards,” Raquelsantos said. (PNA)