The local automotive industry is pushing for the exemption of vehicles registered under the Comprehensive Automotive Resurgence Strategy from a proposal to raise the excise tax on new vehicles.
Chamber of Automotive Manufacturers of the Philippines Inc. vice president and Mitsubishi Motor Philippine Corp. corporate secretary and first vice president Dante Santos said the Trade Department was supporting the industry position.
“We will be asking for lower rates for the entire automotive sector. We have to protect the local industry, the Cars program and the requirement of the industry, as well. Cars is supposedly the vehicle for the masses, if that will be compromised, then all is gone,” he said Monday at the sidelines of the awarding of certificates to participating suppliers in Makati City.
Mitsubishi awarded Monday certificates to 25 participating parts suppliers, the first batch that will supply the vehicle parts for Mirage.
MMPC president Yoshiaki Kato said more suppliers would join the company as soon as local production commenced next year.
The government plans to increase the excise taxes on vehicles, ranging from P100,000 to P200,000 per unit depending on the unit/model category.
The industry group met Finance officials Monday to air the sentiments of the industry. A position paper will be submitted soon to formalize the industry’s stand on the proposed tax increases.
Campi said aside from being saddled by tax hurdles, the unstable foreign exchange was also starting the affect the viability of existing pricing of vehicles.
Santos said the industry might be forced to increase vehicle prices by December or early January 2017.
“This is the forex level during the Asean financial crisis. The rates hasn’t settled down yet and it keeps on increasing. Our [MMPC] current costing in based on 45 [pesos to a dollar]. It has been a while since we adjusted due to forex rates,” he said.