BOI: Honda tax perks to back PHL motorcycle demand

The tax incentives and other perks that Honda Philippines Inc. got for its motorcycle plant will support the Philippines’ growing motorcycle demand, Trade Secretary Gregory Domingo said in a statement Tuesday. In the statement, the Board of Investments, which granted Honda these incentives, said it has approved the firm’s P2.46-billion project to produce additional 200,000 motorcycle units annually in its existing plant at First Philippine Industrial Park, Tanauan City, Batangas. The expansion will boost Honda’s current manufacturing rate of 400,000 units a year. “This will accommodate the strong demand for motorcycles in the years to come as [the Philippines] sustains its annual double digit growth. Motorcycles are considered as an affordable means of transport for Filipinos," said Domingo, who also serves as BOI chair. The Honda project will involve the construction of new buildings, and the acquisition and installation of additional machines and equipment for the production of motorcycles, parts, and components. It will also involve the in-house manufacturing of major parts and components such as engine parts, frames and chassis, fuel tanks, and major plastic components for various motorcycle models. The expansion is expected to create around 500 jobs. — PE/VS, GMA News