Olongapo SubicBay BatangGapo Newscenter

Thursday, September 22, 2005



Senator Richard Gordon, Chairman of the Senate Committee on Government Corporations and Public Enterprises, yesterday scored the business of importing used right-hand drive cars as an illegal activity that corrupts society and saps the economic well-being of the nation and urged the Department of Justice to file criminal charges against persons responsible for the “illegal” importation of right-hand drive vehicles, even as he demanded that the bureaus of customs and internal revenue collect all taxes due from such importations.

Section 1 of Republic Act 8506 states that it is unlawful to import, register or operate any vehicle “with its steering wheel on the right hand side of the vehicle.”
Gordon said that importers have resorted to “all sorts of legal contortions” to justify their illegal acts.

In a privilege speech, Gordon said that the government has lost P500,000 in taxes on each of the 90,000 right-hand drive cars imported through the Subic Freeport zone. This is only for the period of 2000-2003 which amounted to P45 billion.

“The entire business of importation and conversion of right-hand drive vehicles is illegal,” declared Gordon adding, “These businesses have turned Subic into a den of thieves and a hive of corruption.”

Furthermore, Gordon said the president of the Subic Motor Vehicles Importers Association has revealed in a Congress hearing that the bulk of all imports of the association are right-hand drive vehicles.

“Crimes have been committed,” Gordon told his Senate colleagues. “We in this Senate cannot stand by idly, passing tax measures that burden the people on the pretest that the government needs the money. It is true that the government needs money – but can we in good conscience burden the people as others laugh their way to the bank on immense profits in the billions from illegal activities?”

He clarified that the Department of Justice did not declare the importation of the right-hand drive vehicles to be legal. He said that the opinion merely confirmed that the Bureau of Customs had the right to auction off the vehicles which have been seized at Subic for having been illegally imported.

Gordon declared that unscrupulous businessmen have taken advantage of the Department of Justice opinion to circumvent the law by auctioning off seized vehicles to the public, making huge profits at the expense of the government. He claimed that the customs and BIR officials had not correctly assessed the duties and taxes due from the importations.

Gordon urged the Senate to pass a resolution requiring the Land Transportation Office to submit all data on the importation of vehicles from Subic since 1992. The resolution would also direct the customs bureau to re-compute and collect all taxes and duties due from the imported vehicles, and the BIR to audit all vehicle importers at Subic to determine if they had paid their correct taxes. The resolution also requires the Department of Justice to file criminal charges against those who had violated the law.


Post a Comment

<< Home


This is a joint private blog of volunteers from Subic Bay. It is being maintained primarily to collate articles that may be of importance to decision making related to the future of Subic Bay and as a source of reference material to construct the history of Subic Bay.

The articles herein posted remains the sole property of original authors and publications which has full credits to the articles.

Disclaimer: Readers should conduct their own research and due diligence before using any article herein posted for whatever intended purpose it may be. This private web log will not be liable for any loss or damage caused by a reader's reliance on information obtained from volunteers of this private blog.

www.subicbay.ph, http://olongapo-subic.com, http://sangunian.com, http://olongapo-ph.com, http://oictv.com, http://brgy-ph.com, http://subicbay-news.com, http://batanggapo.com 16 January 2012