Government gets tough on registration of imported cars

Owners of imported motor vehicles will not be allowed to register or renew the registration of their vehicles with the Land Transportation Office (LTO) unless they show proof that they have paid the proper taxes and duties.

The proof should include certificates from the Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR) showing that the correct taxes and duties and fees have been paid.

Executive Order No. 142 provides that imported motor vehicles are subject to excise tax and value-added tax under the National Revenue Code and duties and other fees under the Tariff and Customs Code of the Philippines.

The EO was issued following reports that an undetermined number of taxable imported vehicles have not been registered with the LTO or have been registered without the payment of correct taxes.

Both the BOC and the BIR are now re-assessing the taxes, duties and fees that were paid by some owners of imported vehicles to determine if they paid the correct amount.

Owners of imported vehicles have only up to April 30 to comply with the requirements for the registration and renewal of registration of their vehicles with the LTO, otherwise their vehicles will be liable for confiscation.