Auto Firms Seek Cut in Excise Tax Bond
Automotive assemblers are proposing to government reduction in the excise tax bond requirement to 10 percent from the current 100 percent as well as possible reduction in excise tax rates as temporary measures to lower the cost of doing business and perk up demand during the crisis period.
The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) is expected to meet with the Bureau of Internal Revenue to push forward their proposals.
"This is included in our discussion with the government on how to lower the cost of doing business in the country," said CAMPI president Elizabeth H. Lee at a forum yesterday.
Lee told reporters that car companies have to pay higher excise tax bond requirement of 100 percent compared to the 10 percent requirement on sin products (cigarette and beverage products).
CAMPI secretary-general Homer Maranan explained that taxpayers or the car assemblers have to post a bond for excise tax equivalent to the full excise tax paid the previous year.
"Why is it that sin products are required to post 10 percent bond only while car companies are required 100 percent," Maranan said.
Maranan said that the BIR's imposition of bond on excise tax was a protection or insurance that taypayers' settle the excise tax dues.
Maranan said that reducing the bond requirement would ease the cost of doing business in the country because as sales of car companies increased so as the bond requirement for excise tax payments. …