Used-car importers, assemblers slam President’s tariff-hike plan

By LAWRENCE AGCAOILI
TODAY Reporter

Importers and assemblers of used motor vehicles inside the Subic Bay Freeport Tuesday said the pronouncement of President Arroyo on a possible increase of the tariff on used-vehicle imports is a “death blow” to Filipino consumers.

The Motor Vehicles Importers Association (MVIA) said a tariff increase should serve as a signal that the government is bent on protecting and favoring the interests of foreign car assemblers more than the rights of the Filipino consumers.

On Monday, during the groundbreaking of the P1.3-billion motorcycle plant of Honda Philippines Inc. in Batangas, Mrs. Arroyo said she would hike the tariff on imported second-hand motor vehicles should the Court of Appeals (CA) junk the government’s motion for reconsideration on its ruling on Executive Order 156, banning the importation of used vehicles in the country is unconstitutional.

“It is quite obvious that President Arroyo continues to bow to pressures from car assemblers. We acknowledge her predicament on this issue. However, we urge the Arroyo administration to exercise its powers in helping resolve economic-related issues and not to be totally biased and kill an otherwise consumer-friendly and fledgling enterprise such as car importation, among others,” MVIA said.

The government currently slaps a five percent duty on imported brand-new and used motor vehicles coming from member countries of the Association of Southeast Asian Nations (ASEAN) and 15 percent to 30 percent from member nations of the World Trade Organization outside ASEAN. There is no distinction between the tariffs of brand-new and used vehicles.

MVIA said the recent CA ruling “is a major victory for free-trade and consumer rights, as middle-income earners would have the chance and choice to purchase affordable motor vehicles.”

The group warned that the planned tariff increase on used motor vehicles would not just be a death blow to our industry and enterprise but would also deny the consuming public of their right to own affordable goods such as second-hand cars.

“We simply cannot close our eyes to the plight of the consuming public, which really cannot afford to buy brand-new vehicles and equipment. We still believe that we can convert this situation into an opportunity, if only the President will not allow her administration to be bullied and coerced by the so-called big players in the auto-manufacturing industry,” MVIA stated.
MVIA, together with all importers from all over the country, has already signified its intention to sit down with local car assemblers and the government in order to hammer out a “win-win” solution