Car makers seek further deferment of BIR’s excise tax regulation

The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) is seeking a further postponement of the implementation of BIR Regulation No. 4-2003 following the failure of Congress to pass a new excise tax law before it went into recess for the Holy Week.

CAMPI president Jose Ch. Alvarez said the group is coordinating with the Department of Finance (DOF) to defer the implementation of the new BIR ruling until the Senate resumes session on April 21.

"There is a need for the deferment to prevent a price disruption for a 35 to 40-day period until the new excise tax bill is acted upon," Alvarez said.

"CAMPI would also ask the Senate to issue a resolution asking the DOF to temporarily put on hold the revenue regulation until the new excise tax bill is passed," he added.

The new BIR ruling is supposed to take effect on March 31 which will effectively tighten the seat measurement on Asian Utility Vehicles (AUVs) and impose a 35 percent to 50-percent tax rate on such vehicles based on their engine displacement.

A new excise tax law was supposed to have been acted upon by Congress on March 21.

But discussions on the new excise tax bill were delayed due to other more pressing bills such as the 2003 budget.

The new BIR ruling was only issued in February this year, and were perceived by most CAMPI members as a less palatable alternative to the value-based excise tax.

The government has been trying to plug the revenue loophole on the AUV 10-seater ruling which grants tax exemption to AUVs and other vehicles which provide seating for up to 10 passengers.