The proposed new Motor Vehicle Development Program (MVDP) has sought for the creation of the so-called Philippine Winners or the “Philippine Brand Vehicles” (PBV) to be granted with full tax and fiscal incentives, exemption from excise tax payments, a special exports program and with assured mass market, a move that seems to revive an old but still burning passion to come up with a Filipino vehicle only with a new vigor this time.

This was contained in a paper presented by the Board of Investments (BoI) to industry participants and part of the specific policy measures in the restructuring of the seven-year old MVDP.

“Another category shall be added and to be called Philippine Winners the Philippine Brand Vehicles (PBV) that will be for the mass and characterized by high local content, compliant with standards full incentives, and exemption from excise tax payments,” the BoI paper said.

The PBV would be the fifth category of the current three categories under the MVPD “passenger cars, commercial vehicles and motorcycles.

The addition of a new PBV category would beef up the new MVDP’s objective to sustain current CKD operation and job retention, production capacity expansion thru new investments and employment generation.

The past MVDPs had similar provisions for the development of a Filipino-produced car but never took off.

Past attempts at building a Filipino car include the “People’s Car” program under then Trade and Industry Secretary Jose Concepcion Jr. and DTI Undersecretary and BoI managing head Tomas I. Alcantara. Then there was also the Asian Utility Vehicle sector, whose attractiveness was eroded when it was subjected to excise tax payments.

To push for the PVB thrust, the BOI paper said that PBVs shall be exempt from excise tax payments.

“Excise tax can address the issue of cost competitiveness for CKDs and creating a market potential for PBV and AFV/advanced technology vehicles. It has the protential for increasing CKD share in the market and encouraging higher localization rate,” the BoI paper said.

Apart from the PBV thrust in the review of the value-based excise tax structure, the BOI also said the review is also meant to implement measures to encourage local assembly operations.

“Excise tax exemption shall be likewise use to promote new technologies like hybrids, electric vehicles to lay the groundwork for market development in the future. These will jumpstart the shift to advance vehicle technology,” the BOI further said.

In terms of exports, the proposed new MVDP has sought to formulate a regular export and a special program designed for PBVs.

“Full incentives shall be provided to PBVs exporters,” the BoI said.

The proposed policy on exports aims to support market access and provide opportunities for locally produced CBUs and parts and components, the BoI added.

Exports of all CBUs in all categories and parts components shall be promoted for exports.

Existing participants to the Automotive Exports Program shall be eligible only for new basic model or same product but with new market.

Based on the BoI paper, the new MVDP will be two-tiered. Level 1 is composed of all current and new participants. Level 1 should be full CKD with full benefits under Executive Order 156.

Level 2 shall be composed of level 1 participants who have graduated to level 2 and having complied with the conditions of high localization rates; assembly of two models each and; production of new parts or provision of production/technical support to parts manufacturers.

Incentives for level 2 participants shall be determined by the BoI.