Workers displaced by tax imposed on second-hand vehicles
The Philippine Star 05/25/2005
President Arroyo’s order imposing a P500,000 special tax on imported second-hand vehicles threatens to displace 8,000 workers in the Subic Freeport area, according to a Zambales congresswoman.
In a privilege speech on Monday night, Rep. Milagros Magsaysay said Executive Order 418 is killing the second-hand motor vehicle industry and rendering about 8,000 people directly employed by it jobless.
"These are painters, mechanics, tinsmiths, converters, air-conditioner technicians, upholsterers, electricians and laborers. The future is bleak for them because the government wants people to buy brand-new vehicles, which they cannot afford," she said.
She said the workers come not only from her province but also from Bataan, Pampanga and neighboring areas.
She said imposing a P500,000 special tax on top of Customs duties for every second-hand vehicle brought into the country through Subic and other free ports makes such vehicles unaffordable by ordinary and middle-class Filipinos.
Since the President issued the order more than a month ago, Subic importers have been forced to close shop one by one and lay off workers, she added.
She stressed that the only people pleased by the presidential directive are the so-called local car assemblers who, she said, do not really assemble their vehicles here but instead import them as CBUs (completely built units) from Thailand.
Even the batteries and tires of these supposedly locally assembled cars are made in Thailand and are not produced by Filipino workers as assemblers claim, she said.
Magsaysay also denounced Customs Commissioner Alberto Lina for his alleged arrogance.
She said Lina, in a meeting with Subic importers last May 13, denigrated Filipinos who cannot afford to buy expensive brand-new cars.
She quoted the commissioner as telling importers who complained that the P500,000 tax would make second-hand vehicles unaffordable by their customers: "If they don’t have enough money, then they should walk. They should save first so they can buy brand-new cars. If you don’t agree with me, file a case in court!"
She said by his remarks, Lina has displayed disrespect for people of modest means who diligently save whatever they can to buy cars, even if second-hand, for their families.
She pointed out that these people still would not be able to afford brand-new cars, even if the government succeeds in killing the second-hand motor vehicle industry. — Jess Diaz
President Arroyo’s order imposing a P500,000 special tax on imported second-hand vehicles threatens to displace 8,000 workers in the Subic Freeport area, according to a Zambales congresswoman.
In a privilege speech on Monday night, Rep. Milagros Magsaysay said Executive Order 418 is killing the second-hand motor vehicle industry and rendering about 8,000 people directly employed by it jobless.
"These are painters, mechanics, tinsmiths, converters, air-conditioner technicians, upholsterers, electricians and laborers. The future is bleak for them because the government wants people to buy brand-new vehicles, which they cannot afford," she said.
She said the workers come not only from her province but also from Bataan, Pampanga and neighboring areas.
She said imposing a P500,000 special tax on top of Customs duties for every second-hand vehicle brought into the country through Subic and other free ports makes such vehicles unaffordable by ordinary and middle-class Filipinos.
Since the President issued the order more than a month ago, Subic importers have been forced to close shop one by one and lay off workers, she added.
She stressed that the only people pleased by the presidential directive are the so-called local car assemblers who, she said, do not really assemble their vehicles here but instead import them as CBUs (completely built units) from Thailand.
Even the batteries and tires of these supposedly locally assembled cars are made in Thailand and are not produced by Filipino workers as assemblers claim, she said.
Magsaysay also denounced Customs Commissioner Alberto Lina for his alleged arrogance.
She said Lina, in a meeting with Subic importers last May 13, denigrated Filipinos who cannot afford to buy expensive brand-new cars.
She quoted the commissioner as telling importers who complained that the P500,000 tax would make second-hand vehicles unaffordable by their customers: "If they don’t have enough money, then they should walk. They should save first so they can buy brand-new cars. If you don’t agree with me, file a case in court!"
She said by his remarks, Lina has displayed disrespect for people of modest means who diligently save whatever they can to buy cars, even if second-hand, for their families.
She pointed out that these people still would not be able to afford brand-new cars, even if the government succeeds in killing the second-hand motor vehicle industry. — Jess Diaz
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