Campi opposed to DTI move to hike tarrif on big cars

[hagiber]

CAMPI bucks DTI move to hike tariff rate on big engine cars
By Marianne V. Go
The Philippine Star 09/23/2004

Chamber of Automotive Manufacturers of the Philippines (CAMPI) Vice President Elizabeth Lee expressed yesterday her opposition to a Department of Trade and Industry (DTI) proposal to raise to 60 percent the Most Favored Nation (MFN) tariff rate on automotive vehicles with an engine capacity of 2.1 liters and above in a bid to discourage the use of gas guzzling vehicles and conserve fuel.

Lee, who is also the concurrent president of the Truck Manufacturers Association, pointed out that the proposed 60 percent tariff rate would apply only to automotive imports from MFN countries, while those coming from the ASEAN region would be subject to the preferential rate of five percent under the ASEAN Free Trade Agreement (AFTA).

Under AFTA, import tariffs for most products in the region were to cut to a range of zero to five percent.

According to Lee, most of the commercial vehicles are two liters and above including Asian utility vehicles (AUVs), sports utility vehicles (SUVs) and light commercial vehicles.

"One can still import 2 to 3 liter CBU from Thailand or any ASEAN country at only five percent tariff, while the same vehicle imported from the US, Sweden or any other MFN country would be subject to a discriminatory 60 percent MFN rate," she explained.

Lee said the higher MFN rate would only become discriminatory and would not really improve fuel economy.

Furthermore, Lee pointed out, the recent shift to an excise tax system based on sticker price was intended to bring in more revenues to the government.

Bigger engines, Lee said, normally have higher prices and thus pay higher taxes and in turn result in higher revenue intake for the government.

The proposed 60 percent MFN rate, Lee argued, "defeats the purpose of bringing in large engine vehicles and appears to run contrary to the other taxes."

She added that "it is not necessarily true that vehicles with bigger engines are gas guzzlers."

She cited the Nissan Patrol 3 liter engine already has an award from Japan for fuel efficiency and clean engine emission.

[kiper]

Lecheng DTI yan.

[revoGSX]

labo naman ng taxation nila... eh yung revo 2.0 gas A/T nga eh 4Km/liter lang .. samantalang mga 3.0gas na modern engine eh kaya ang 7km/liter hehe

[OTEP]

DTI? What do they know about cars?

[109]

Discriminatory Tarrif Increase ......Di Tama Ito!

[pink_cadillac]

What the DTI should actually do is get the performance figures of vehicles in terms of their fuel economy and emmissions. Then tax accordingly.

This will force manufacturers/dealers to choose the vehicles and the inherent techological options that they bring in very well.

In this situation you penalize gas guzzlers and encourage economy.

If their reasons are of course all fluffy and altruistic then address fuel consumption and pollution. Why blame engine displacement?