New car import taxes added to help local players

New car import taxes added to help local players

The Department of Trade and Industry (DTI) started the year by deciding to impose new taxes on vehicle imports in the form of a cash bond amounting to P70,000 per unit of imported passenger cars and P110,000 per unit for light commercial vehicles.

This is after finding enough evidence that cheap cars abroad caused “serious injury” to the local industry.

According to DTI’s data, passenger car imports have increased by 35% from 2014 to 2018, while the share of imports relative to production showed that imports exceeded domestic production from 295% in 2014 to 349% in 2018.

“Safeguards are imposed to protect local manufacturers and producers and to prevent other companies from leaving the country…. [Safeguards] may also attract vehicle manufacturers to operate in the country and create more jobs,” Trade Secretary Ramon Lopez stated.

Read more here.

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