Some businessmen who are engaged in importing high-end luxury cars to the Philippines haven’t been too cheerful lately, it seems.
According to our source in the automotive industry, the shift in temperament of these businessmen began when the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Order (RMO) 21-2013, which outlines new procedures for the processing and issuance of Authorities to Release Imported Goods (ATRIG).
So what caused these luxury car importers’ to bare their fangs? Apparently, under the old system (RMO 35-2002), car importers would bundle several vehicles under one ATRIG. This allowed tremendous tax savings (or revenue losses for the government, depending on your point of view) due to their practice of combining entry-level vehicles with top-of-the line models in one container. According to our source, the funds that were saved in tax duties were enough to sustain the importers’ high-flying ways.
However, with the new “one ATRIG, one automobile” policy in place, each vehicle is now assessed for its individual value, thus ensuring parity and efficiency in tax collections. Unfortunately for the importing businessmen, this also means that the loophole that worked for them for so long has now been shut. Coupled with the rumor that the BIR will also start pressuring these importers on back taxes (including one supposedly for as much as P2 billion), it’s no wonder that these importers have, of late, been hissing like angry felines. Daxim L. Lucas
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