The Department of Trade and Industry recently announced that it would be imposing new taxes on motor vehicles in a bid to safeguard the local auto industry from the influx of imported vehicles.
Calling the move a safeguard measure, the DTI will require a cash bond worth P70,000 on each Passenger Car imported into the country. By the same token, it will slap a P110,000 cash bond on each Light Commercial Vehicle (SUVs, pick-ups, vans) brought into the country.
The move is a response to the petition filed by the Philippine Metalworkers Alliance, which said that the recent increase in the number of imported vehicles brought into the country is hurting the local automotive manufacturing sector.
At present, only 5 automakers are manufacturing some of their models on Philipine soil. These include Toyota, Mitsubishi, Nissan, Hyundai, and Foton. The rest of the industry finds it more cost effective to source their vehicles from abroad.
With this new measure, a lot of questions have been raised, specifically about the effect it will have on our local auto industry. Will it indeed a have positive impact? Or will it hurt an already ailing automotive landscape that is still reeling from the effects of the pandemic and lockdown?
The new measure is said to take effect 200 days from the issuance of an Order from the Commissioner of Customs.