Several tax holidays and incentives are available for scrapping facilities and Treatment, Storage, and Disposal (TSD) facilities registered under the Vehicle Useful Life Component of the Department of Transportation’s (DOTr) Public Utility Vehicle Modernization Program (PUVMP).

In support of the modernization program, the Department of Trade and Industry (DTI) included scrapping and TSD facilities registered with the DOTr and the Land Transportation Franchising and Regulatory Board (LTFRB) in their list of sectors eligible for tax incentives under the 2020 Investment Priorities Plan (IPP). The 2020 IPP is the transitional Strategic Investment Priorities Plan (SIPP) under RA 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

“Hinihikayat ho namin ang lahat ng interesadong scrapping at TSD facilities sa buong bansa na makiisa at makilahok sa Scrapping Program ng gobyerno. Marami hong naghihintay na insentibo para sa kanila sa programang ito,” said LTFRB Chairman Martin B. Delgra III.

The 2020 IPP incentives include Income Tax Holidays (ITH), enhanced deductions and duty exemptions for capital equipment, raw materials, and other spare parts at accessories used by scrapping facilities.

“Isa sa pangunahing layunin ng PUVMP ay siguruhing roadworthy ang lahat ng pampublikong sasakyang tumatakbo sa ating mga kalsada upang makaiwas sa anumang aksidente at makabawas sa polusyon na dulot ng mga pollutants na nanggagaling sa emissions ng mga lumang sasakyan,” said Delgra.

The DOTr, in coordination with the DTI and the Department of Environment and Natural Resources (DENR), outlined Department Order No. 2020-021 or the Interim Scrappage Program which details the processing of non-roadworthy or unsafe PUVs. Drivers and operators may sell these end-of-life vehicles to help them purchase new PUVMP-compliant units

“Nasa unang yugto na tayo ng implementasyon ng Scrapping Program kung saan ine-evaluate ng ating mga regional secretariats ang mga existing registered scrapping facilities at TSD facilities sa buong bansa na maaaring lumahok sa Scrapping Program,” said Delgra.

Facilities that pass the evaluation of the regional secretariat will be given a two-year provisional authority (PA) to operate under the PUVMP. The regional secretariat is comprised of the LTFRB Regional Franchising and Regulatory Office (RFRO) and the regional branches of the Land Transportation Office (LTO), Office of Transportation Cooperatives (OTC), DTI and DENR.

The two-year PA may be renewed until the official establishment of the government’s large-scale vehicle scrappage facility in support of the PUVMP.