BoI to Create Committee to Review Auto Excise Tax
The Board of Investments is set to create a committee, composed of government agencies and auto industry players, to determine the changes in the automobile excise tax needed to boost auto sales and to grant preferential treatment for low-priced locally assembled vehicles.
An official source said the committee will determine the appropriate recommendations for the legislative branch to restructure the automobile excise tax system, which was set in 2003 under Republic Act No. 9224, An Act Rationalizing the Excise Tax on Automobiles.
The review of the automobile excise tax is directed at addressing the diminishing sales of the Asian Utility Vehicle and to prop up the planned new vehicle category, the Philippine Utility Vehicle (PUV) under the new Motor Vehicle Development Program.
The intention is to revive the vibrancy in the AUV sector and the promotion of the PUVs by giving these vehicle categories some favorable excise tax treatment. These vehicle categories are deemed the most affordable among vehicle categories, have high local content that could promote the development of the local auto parts and components industry and create more employment.
An official said that BOI has to rely on the recommendations of the committee for the legislature as the repeal of the excise tax issue will be dealt by Congress.
"That is why we are seeking the commitment from the industry stakeholders," the official said. He also noted that the repeal of the law should not result in revenue loss for the government as it may just shift the tax burden to other categories, probably the luxury vehicles. The Department of Finance will be part of the committee.
Before the passage of RA 9224 in …
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Publication information: Article title: BoI to Create Committee to Review Auto Excise Tax. Contributors: Not available. Newspaper title: Manila Bulletin. Publication date: May 10, 2010. Page number: Not available. © 2009 Manila Bulletin Publishing Corp. COPYRIGHT 2010 Gale Group.
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