THE BUDGET, Trade, and Finance departments on Monday, January 19, assured that the government can still pay auto industry stakeholders despite the veto of the Comprehensive Automotive Resurgence Strategy (CARS) Program in the 2026 budget.
In a joint statement, the Department of Budget and Management (DBM), the Department of Trade and Industry (DTI), and the Department of Finance (DOF) noted that the government can still pay its obligations by adding the fiscal support arrearages line item under the DTI-Board of Investments budget in 2025.
The additional amount will come from the declared and verified savings of the Department of Public Works and Highways (DPWH) in 2025.
“Based on the tax payment certificates (TPCs) already issued and validated, the government has the capacity to settle dues to participating car manufacturers, including Toyota and Mitsubishi, as well as eligible autoparts makers,” the agencies said.
“These payments will be supported by available (fiscal year) 2025 savings,” they said.
“The government’s position is clear: we will not abandon the auto industry,” said Budget Secretary Rolly Toledo.
For his part, Finance Secretary Frederick Go said, “Our message to the auto industry is clear: do not worry — you remain part of the government’s long-term plan for industrial development, job creation, and economic growth.”
Sen. Sherwin Gatchalian had earlier said that he is concerned about the veto of the CARS and Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, noting that the country’s debt to automotive companies Toyota and Mitsubishi has reached about P4.2 billion. (ABS-CBN News)
