Friday, February 15, 2008
Pablo bats for scrapping of prohibition
A CEBUANO congressman has suggested that Malacañang revoke Executive Order (EO) 156 to allow the importation of all kinds of used vehicles to help the middle-class and small and medium entrepreneurs.
Speaking before the hearing of the House committee on good government, Rep. Pablo Garcia (Cebu Province, 2nd district) said that based on the admission of Bureau of Customs Commissioner Napoleon Morales, buying a new vehicle nowadays is costly because of high taxes.
Morales said that aside from duties and taxes, customs also collects a 12-percent expanded value-added tax and the 10 percent ad valorem tax for the Bureau of Internal Revenue.
Under this situation where importers of new vehicles are required to pay about 60 percent more in taxes, an ordinary citizen cannot afford it. If he is need of one, he often has no choice but to buy a second-hand vehicle.
Also, a sedan worth P700,000 abroad will cost a middle-class family here in the Philippines more than P1 million.
Rep. Jessie A. Lapus (Tarlac) said that because EO 156 was supported by a recent Supreme Court ruling on a case filed by a Subic-based businessman, importation of used vehicles is banned in the country.
However, Lapus said that in order to bring used vehicles in the country, businessmen declare these as truck replacement parts, which also result to undervaluation.
Aside from used vehicles, some businessmen reportedly smuggled new Toyota and Honda cars in 2006 and 2007, prompting the Cebu Auto Dealers Association to complain to Rep. Antonio V. Cuenco (Cebu City, south district).
Cuenco is the principal author of Resolution 320 that called for the investigation on smuggling, now being handled by the House committee on good government chaired by Rep. Pedro Romualdo (Camiguin).
Commissioner Morales said the misdeclaration resulted to technical smuggling, hence, all those who own tax-deficient vehicles should pay the tax deficiency even if they bought the vehicles in good faith.
But Rep. Rodolfo Bichara said it is unfair to punish buyers in good faith who are second, third and even fourth owners of tax-deficient vehicles.
Bichara said that if this system continues, smugglers and the people they are in cahoots with inside the BOC and Land Transportation Office will continue to evade prosecution. (EOB)
For Bisaya stories from Cebu. Click here. (February 15, 2008 issue)
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