MANILA — The government has assured automotive manufacturers and parts suppliers that it will continue to honor its obligations under the Comprehensive Automotive Resurgence Strategy (CARS) Program despite the veto of a related funding item in the proposed 2026 national budget.
The Department of Budget and Management (DBM), Department of Trade and Industry (DTI), and Department of Finance (DOF) said the veto does not indicate a withdrawal of support for the sector, noting that existing appropriations under the 2025 General Appropriations Act remain available to settle validated claims.
According to the agencies, obligations backed by issued and verified Tax Payment Certificates (TPCs) can still be paid through the augmentation of existing 2025 budget items, subject to the availability of declared savings and presidential approval. Payments cover participating manufacturers, including Toyota and Mitsubishi, as well as eligible automotive parts makers.
Budget Secretary Rolly Toledo said the administration remains committed to settling obligations in a lawful and fiscally responsible manner, while maintaining investor confidence.
Claims that have been validated but are not yet supported by TPCs may be proposed for inclusion in the 2027 National Expenditure Program, the agencies said.
DTI Secretary Cristina Roque and Finance Secretary Frederick Go both underscored the importance of the automotive industry to employment, manufacturing, and investment, reiterating that the CARS Program remains part of the government’s long-term industrial strategy.
The agencies said validation of remaining claims is ongoing, with payments to proceed subject to compliance with fiscal and legal requirements.