Business World

DTI makes tax pitch to Japan auto wiring f irms


THE DEPARTMENT of Trade and Industry (DTI) said it has been promoting the new tax regime to attract investment from Japanese manufactur­ers of auto wiring harnesses.

The DTI held a virtual roundtable with six Japanese companies Tuesday for potential expansion projects and new operations in the case of companies that have not decided to locate in the Philippine­s as yet.

Some of the companies “are still completing their expansion and diversific­ation plans,” DTI Special Trade Representa­tive Dita Angara-Matha said in a statement Thursday.

Wiring harness manufactur­ing qualifies for incentives like income tax holidays under the recently signed Corporate Recovery and Tax Incentives for Enterprise­s (CREATE) Act, Trade Undersecre­tary Rafaelita M. Aldaba said.

CREATE cuts corporate income tax and rationaliz­es incentives, making them more time-bound and performanc­e-based.

Executives from two firms that have already committed to building wiring harness plants in the country attended the meeting. Sumitomo Wiring Systems, Ltd. announced in September that it broke ground on a new factory in Pangasinan, while Yokowo Co., Ltd. said it will invest P230 million in a Bataan facility.

The Philippine­s exported almost $1.9 billion worth of wiring harnesses last year, almost half to Japan, Trade Secretary Ramon M. Lopez said.

“With wiring harness applicatio­ns expanding beyond the automotive industry to the telecommun­ications, aerospace, medical fields, and other ICT areas, support for upgrading Philippine-based wiring harness operations have become all the more imperative,” he said.

“The total collective value of the new and expansion investment projects from this group of Japanese locators is conservati­vely estimated at P10.5 billion. Additional jobs created by the same investment­s are projected to reach 18,650.” —

Newspapers in English

Newspapers from Philippines