"Cagayan" imports, pro or anti?

[shredingman123]

Ive watched a show from gma news TV that second hand imports like these are under scrutiny once again...their argument is that these cars supposedly "kills" the local vehicle manufacturing industry, going as far as to say that the PH is becoming a one big garbage bin of Japan and the like. Another premise is that these cars a UNSAFE especially the converted ones. As a car enthusiast, many of the cars id like to own are not available here, namely the JDM cars ( r34's, rx7'z etc) and many euro cars ( old porsche's and M3's) and for that reason alone , I am supporting importation, your thoughts?

PS
I own a "B" Plate car :D

[niky]

I'm pro-import, anti-Cagayan.

Let me explain:

Secondhand car importation may hurt the industry a bit, but it creates jobs in sales, distribution, conversion and maintenance.

And if properly taxed, secondhand imports will not be detrimental to the sale of brand new cars in the country. Sales which are less affected by the importation of secondhand cars (simply because there are tens of thousands of secondhand local cars available) than they are by the fact that most people can't afford brand new.

-

But freeport zones like Cagayan undermine the import tax structure and defraud the government of tax money.

How much is a Cagayan Honda Fit? 350,000 pesos.

Now, for a car that small, you're supposed to pay 10% VAT, 30% customs duties and another 15% (since it's only an "economy car") in Ad Valorem tax. That's 55% of the car's "book value".

Assume a book value of around 500,000 yen... or about 270,000 pesos, as the Fit was 1.1m yen brand new.

So:

270,000 pesos
27,000 pesos VAT
81,000 pesos Customs Duties
40,500 pesos Ad Valorem
=
418,500 pesos

This doesn't even include the dealer profits or the conversion cost... yet. So:

500,000 pesos (fair price). This would buy you a car that's better than what you can get here, but at a price that's reasonable.

Now, that's a far cry from 350k pesos, isn't it? At 350k, you're talking merely dealer markup and conversion costs. VAT... possibly... but not assuredly.

Port Irene is one of the biggest smuggling headaches of the government, but nobody is going to do crap about it while Manong Johnny Enrile is still in office.

[vinj]

Port Irene is one of the biggest smuggling headaches of the government, but nobody is going to do crap about it while Manong Johnny Enrile is still in office.

I think they're choosing to just wait for the man to kick the bucket given his age; so the question is more of who will take helm to coddle Port Irene after Manong Johnny is out of power?

BTT: Am i pro or anti? I lean more towards the anti given current situation where there is a lack of strict implementation of importation taxes and conversion, road worthiness standards in the conversion, etc. (if its an RHC car). If these are addressed (proper taxes, proper conversion standards are set and passed) then i don't seen any problem and the local motoring industry and lawmakers have find ways to make things competitive across the board, while the LTO should work on phasing out old, unfit vehicles, PUVs, trucks, etc.

On my personal experience, we have a converted Serena at the office (B plates); runs like crap but i like the interior and the features (seat comfort and finish).

[shadow]

I think they're choosing to just wait for the man to kick the bucket given his age; so the question is more of who will take helm to coddle Port Irene after Manong Johnny is out of power?

Jacki enrile, he will run for a senate seat next election for the soon vacated slot of his father, alam mo naman ang politics dito priority to the incumbent is extended to family members.

And I think this admin will never change the status quo on port Irene, that's the only request of JPE.

And we all know a senator can't be the senate president w/o the approval of the palace same with being a house speaker

[lowslowbenz]

If Manong Johnnie bites the dust ... Jack Enrile is still there (who's also an avid car enthusiast) ... So for me, I see no power shift in the Cagayan Region in the immediate future. That being said ......

I'd like to get my hands on those Porsche's ... or an AMG Merc!

Gusto ko ... happy kayo! .. yehey!! ..

[yapoy86]

ok lang siguro kung yung mga imports dyan eh mga exotic cars... hindi yung mga likes ng honda fit..

btw, re sa conversion from RHD to LHD.. mas kampante na ako dyan sa conversion ng ginagawa nila sa mga japanese cars compared sa mga bulok na jeepney at tricycle na pinayagan din ng LTO na ma rehistro...

mga trucks din ata dyan dumadaan.. kasi wala ka naman mabibili na dump truck na brandnew and orig LHD... lahat ng trucks sa atin eh converted

[niwde11]

^^. for me okay lang import ng mga vehciles not available sa mga dealership but should be properly taxed.

[GTi]

I have no qualms for 2nd hand car importation as long as the cars imported are still very much alive. Converted imports, though, should be scrutinized more thoroughly as to the roadworthiness of the conversion. I don't care if they say it hurts the local industry since they cater to different markets. The local industry prices their brand new cars too much stratospherically. And this industry not only provides jobs but also gives people in the lower rungs of society the opportunity to purchase and own a good car. Who the hell charges 55% tax on an imported car? If they reduce the damn taxes maybe the smuggling would decrease. That is the problem with the government. Sobrang matakaw.

[Ry_Tower]

If the government can strictly enforce the law, converted cars won't be a problem or issue. SO the problem is the proper way of doing this business.

[GTi]

Lahat lahat naman may kasalanan eh. Kung yung mga taong nagmamaneho ay maingat, we would've still been like the US and there would still be RHD cars running in the streets and there would be no need for the risky conversion process. If the government didn't have such a big appetite for taxes (and yet has no capability to obtain them, and the ones that they do manage to obtain they squander away for their personal use and say to the public that the government has no money) the import taxes wouldn't stratospherically high so that getting a 2nd hand import car would turn out to be more expensive than getting a 2nd hand local car. And many dealers wouldn't have to turn to unscrupulous ends to make their cars affordable. Yung local car industry din kasi matakaw, gusto nila sila lang ang may karapatang magbenta. So they collaborate with the equally matakaw government and go against the still good quality and affordable 2nd hand import cars crying foul.