MALACAÑANG defended Tuesday the government's plan to grant P27-billion worth of tax incentives to the car manufacturing industry under the Comprehensive Automotive Resurgence Strategy (Cars) Program.
Aquino signed recently Executive Order 182 for the Cars Program to be implemented for six years starting 2016.
The program aims to attract new investments, stimulate demand and effectively implement industry regulations that will revitalize the Philippine automotive industry, and develop the country as a regional automotive manufacturing hub.
Valte said that the granting of P27-billion worth of tax incentives was thoroughly studied.
"Essentially, the government weighed the advantages of the program and found that the effects are beneficial to the industry, especially if it means creating more jobs," she said.
According to the Department of Trade and Industry, the program is expected to create about 200,000 direct and indirect jobs for the duration of the program, she said.
The projected result is expected to contribute an estimated 1.7 percent of the country's gross domestic product, Valte added. (SDR/Sunnex)