THE SENATE Ways and Means Committee chairman has filed a resolution seeking to probe the increased smuggling cases of luxury cars arriving in the country, citing revenue loss for the government.
“It bears stressing that smuggling causes a significant impact on the economy. Aside from revenue loss, the continued smuggling of luxury vehicles greatly affects the automotive industry, particularly legitimate businesses,” Senator Sherwin T. Gatchalian said in a statement on Monday.
Mr. Gatchalian filed Senate Resolution No. 1318, dated Feb. 26, directing the legislative body to probe the revenue losses incurred by the smuggling of luxury vehicles.
“Despite the penalties imposed on smuggling and the efforts of various government agencies to curb its incidence, the smuggling of high-end luxury vehicles remains prevalent,” the resolution stated.
The Bureau of Customs (BoC), on Feb. 13, seized P1.4 billion worth of luxury vehicles from separate car dealers in Pasay City and Parañaque City.
The agency had also raided a warehouse in Makati City on Feb. 14 and a Taguig City warehouse on Feb. 19, holding P366 million and P900 million worth of luxury cars, respectively.
“Amid rampant smuggling of luxury vehicles, the government needs to review its approach in combating smuggling in the country,” he added.
The government imposes a tax on vehicles based on their manufacturer or importer’s selling price, net of excise, and value-added tax, under Section 149 of the National Internal Revenue Code.
“An automobile with a net manufacturer’s price or importers selling price of over P4 million shall be levied a 50% excise tax,” it added. — Adrian H. Halili
