Court Stops Implementation Of Car Tax Scheme

[Mr Lee]

I wonder if this will actually make the cost of cars lower? This should  be a good thing for those of us who wish to bring our cars when moving.  HE MAKATI REGIONAL TRIAL COURT has stopped the implementation of a new tax scheme for imported vehicles, which is hoped to boost government revenue. In a Temporary Restraining Order dated June 3, Judge Winlove Dumayas of the Makati RTC Branch 59 stopped the DOF and its agencies—the Bureau of Customs and Bureau of Internal Revenue—from enforcing Joint Order No. 1-2010. The DOF order dated April 5 provides a uniform basis on the appraisal of imported vehicles. It is aimed at ensuring the proper collection of duties, value-added tax, excise tax and other levies due on such shipments. The order sets the book value as basis of appraisal instead of transaction value. This means taxes would be based on reference prices listed in books instead of the amount paid in acquiring the imported vehicles. In issuing the TRO, the court was acting on a complaint filed by car importer Benjamin I. Navea Jr., who argued that the new tax policy would cause “grave and irreparable injury” to vehicle importers. Navea claimed that due to the planned shift to the book value system, he would pay an estimated P1 million in taxes and duties for a brand-new Mitsubishi Pajero he was planning to import from the United States.He said that based on transaction value, used under Republic Act No. 9135 that amended the tariff and customs code, he would pay about P500,000 only for the Pajero. “There is absolutely nothing in (the code) that authorizes the use of reference price as primary method of valuation,” the importer said. Further, Navea said the DOF order would have adverse impact on commercial automobile imports—and consequently, local buyers—since importers would have to shoulder higher duties and taxes, excise taxes and other charges because of the shift in the tax scheme.Court stops implementation of car tax scheme

[Mik]

Governments could try spending less money for a change..