Congress probe on import of brand-new vehicles sought
Group raises issue of undervaluation and low price tags
By JONAS REYES, MB
SUBIC BAY FREEPORT— A business group based here is seeking a congressional investigation on the alleged violations of the Customs and Tariff Code by dealers of imported, brand-new vehicles.
The results of the probe could be made basis of measures that Congress could pass to generate revenues for the government, the group said.
Peter Geroue, president of the Motor Vehicle Importers Association (MVIA), urged Congress to investigate reports that billions of pesos in revenues were lost due to alleged tax fraud committed through undervaluation of imported brand-new vehicles.
He said that thousands of completely built units (CBUs) or brand-new vehicles have been arriving at the Port of Batangas with "questionable price tags" that serve as basis for the computation of Customs taxes and duties.
The MVIA sent recently a team to observe the unloading, tax processing and issuance of exit permit of imported brand-new vehicles of popular brands at the Port of Batangas.
Based on the team’s report, 82 pick-up trucks imported from Thailand were unloaded at Batangas port last April 21 with questionable purchase values at the point of origin.
A local dealer of pick-up trucks paid total taxes and duties of R15 million or about R182,000 per unit based on the official computation of the Bureau of Customs office at the Batangas port.
"This tax-payment scheme for brand-new car importers is definitely unfair for us second-hand car importers who will be obliged to pay an additional R500,000 specific tax on top of the existing Customs duties and taxes when Executive Order No. 418 takes effect," Geroue said.
Geroue criticized the government’s unjustifiable protection of local car assemblers and importers of brand-new vehicles who are paying comparatively low taxes for every imported CBU.
He said that imported brand-new vehicles arriving in the country do not have local labor component, unlike the second-hand vehicles that undergo intensive labor before reaching the street.
The CBUs are delivered directly to car dealers and display rooms for sale, he noted.
"It would be improper and suspicious for brand-new car importers to claim that workers in automotive industry would lose their jobs when in fact completely built brand-new vehicles are being shipped to the country," Geroue said, reacting to a privileged speech delivered by Akbayan Rep. Loretta Rosales.
The second-hand motor vehicle industry, Geroue said, employs thousands of workers such as auto mechanics, electricians, tinsmiths and painters who have reiterated their appeal to the government to prevent their dislocation that comes as a result of the ban on the entry of right-hand-drive vehicles.
By JONAS REYES, MB
SUBIC BAY FREEPORT— A business group based here is seeking a congressional investigation on the alleged violations of the Customs and Tariff Code by dealers of imported, brand-new vehicles.
The results of the probe could be made basis of measures that Congress could pass to generate revenues for the government, the group said.
Peter Geroue, president of the Motor Vehicle Importers Association (MVIA), urged Congress to investigate reports that billions of pesos in revenues were lost due to alleged tax fraud committed through undervaluation of imported brand-new vehicles.
He said that thousands of completely built units (CBUs) or brand-new vehicles have been arriving at the Port of Batangas with "questionable price tags" that serve as basis for the computation of Customs taxes and duties.
The MVIA sent recently a team to observe the unloading, tax processing and issuance of exit permit of imported brand-new vehicles of popular brands at the Port of Batangas.
Based on the team’s report, 82 pick-up trucks imported from Thailand were unloaded at Batangas port last April 21 with questionable purchase values at the point of origin.
A local dealer of pick-up trucks paid total taxes and duties of R15 million or about R182,000 per unit based on the official computation of the Bureau of Customs office at the Batangas port.
"This tax-payment scheme for brand-new car importers is definitely unfair for us second-hand car importers who will be obliged to pay an additional R500,000 specific tax on top of the existing Customs duties and taxes when Executive Order No. 418 takes effect," Geroue said.
Geroue criticized the government’s unjustifiable protection of local car assemblers and importers of brand-new vehicles who are paying comparatively low taxes for every imported CBU.
He said that imported brand-new vehicles arriving in the country do not have local labor component, unlike the second-hand vehicles that undergo intensive labor before reaching the street.
The CBUs are delivered directly to car dealers and display rooms for sale, he noted.
"It would be improper and suspicious for brand-new car importers to claim that workers in automotive industry would lose their jobs when in fact completely built brand-new vehicles are being shipped to the country," Geroue said, reacting to a privileged speech delivered by Akbayan Rep. Loretta Rosales.
The second-hand motor vehicle industry, Geroue said, employs thousands of workers such as auto mechanics, electricians, tinsmiths and painters who have reiterated their appeal to the government to prevent their dislocation that comes as a result of the ban on the entry of right-hand-drive vehicles.
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