DOF highlights CARS funding fix, reforms

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January 17, 2026 | 12:00am

To boost investment climate

MANILA, Philippines — The Department of Finance highlighted the resolution of the Comprehensive Automotive Resurgence Strategy (CARS) program funding issue and a slate of regulatory reforms as proof that the government is delivering concrete actions to improve the business environment and attract investments.

Speaking at the Big Bold Reforms press briefing, Finance Secretary Frederick Go said the government has finalized a funding solution for the CARS program after concerns were raised over its previously vetoed allocation.

“After the much chatter on the vetoed funding of the CARS program, the government finalized a funding solution for the CARS program, and therefore, car manufacturers enrolled in the program can now be assured that the government will fulfill its commitment to investors,” Go said.

The implementation and budgetary mechanics fall under the Department of Budget and Management, but Go emphasized that the program would be funded this year.

Go stressed that the resolution sends a strong signal to investors about policy predictability, one of the key concerns consistently raised by the private sector alongside the ease and cost of doing business.

“All the private sector stakeholders always stress three things: the ease of doing business, the cost of doing business and predictability of doing business,” he said. “It’s important that the government responds accordingly.”

Earlier this month, President Marcos exercised his line-item veto on the 2026 national budget, cutting around P92.5 billion in unprogrammed appropriations, including the P4.32 billion allocation meant to cover CARS program’s fiscal support to participating manufacturers.

The CARS program was introduced in 2015 to provide time-limited, performance-based fiscal incentives aimed at drawing strategic investments into the local production of motor vehicles and automotive components.

Beyond the CARS program, Go outlined several reforms aimed at cutting red tape and lowering compliance costs.

These include the Bureau of Internal Revenue’s move toward a digitized, risk-based and data-driven audit system following the suspension of letters of authority last November.

Two of the goals when audits resume, Go said, are to “reduce the number of departments authorized to issue letters of authority as well as to reduce the number of letters of authority a taxpayer can receive in any given year.”

At the Bureau of Customs, Go announced the signing of the National Single Window Integrated Trade Facilitation Platform, which will consolidate trade requirements into a single digital portal. The system is expected to cut red tape, reduce delays and lower costs, while improving trade facilitation and tax collection.

The economic team also presented the planned visa-free entry for Chinese businessmen and tourists through Manila and Cebu airports for up to 14 days, a move that Go said would “boost tourism, trade and investments” and help strengthen ties with the country’s largest trading partner.

“These are proof that the government’s reforms are not just promises, they are concrete actions being implemented to deliver tangible benefits to our people,” Go said.

On the broader economic outlook, Go reiterated that growth targets of five to six percent remain competitive globally. He also emphasized that reforms aimed at improving the business climate ultimately support consumers through job creation.