BOI exempts Honda CR-V from excise tax

Honda’s new 10-seater CR-V will be categorized as an Asian utility vehicle (AUV) and not as a sports utility vehicle (SUV), Board of Investments (BOI) managing head Gregory Domingo disclosed yesterday.

"The BOI has approved Honda’s new 10-seater CR-V under Category I of the Motor Vehicle Development Program," Domingo said.

As an AUV, the 10-seater CR-V will be exempt from excise taxes.

"The new CR-V qualifies as an AUV because it has a seating capacity of 10," Domingo said.

Honda’s new CR-V is expected to compete head-on with Toyota’s Revo and Tamaraw FX, the Mitsubishi Adventure, the Isuzu Crosswind and Hi-Lander and the Anfra of Francisco Motors Corp.

Honda plans to launch the new 10-seater version of its popular sports utility vehicle next year.

Industry sources said Honda noted a shift in consumer preferences from passenger cars to utility vehicles for practical reasons.

They said that AUVs can be used commercially and can accommodate a big family.

The 10-seater CR-V, sources said, will be wider and larger but will contain all the amenities currently available in the CR-V.

The current compact CR-V comes in either two or four wheel drive. It is powered by a two-liter DOHC 16-valve 4-in-line with 146 horsepower and a five-speed manual or four-speed automatic transmission.

The Honda CR-V has been so popular because of its smooth handling like a passenger car with SUV capability.