Group hails BIR order

MANILA, Philippines - In response to the Bureau of International Revenue’s (BIR) latest action its campaign to promote tax and tariff efficiency, citizen group Tariff Watch commended BIR Commissioner Kim Henares’s crackdown on vehicle importation and taxation.

Mark Sena, general secretary of Tariff Watch, calls Revenue Memorandum Order (RMO) 21-2013 “an inspired move to prevent luxury vehicle importers from distorting the spirit of the law.”

RMO 21-2013 amends provisions of RMO 35-2002, which prescribes guidelines and procedures for the processing and issuance of authorities to release imported goods (ATRIG). Among other clauses, the new RMO strictly requires a “one ATRIG, one automobile policy”, which Tariff Watch claims will translate to more accurate value assessments.

“Previously, luxury car owners could have a single bill of lading for several automobiles – effectively, it was like having a ‘bulk discount’ for numerous units,” Sena explained.

“Unfortunately, we know that for luxury car brands like Mercedes Benz and BMW, the price range can vary greatly, depending on the particular model. It’s only fair and logical that the assessment for an entry-level sedan should not be combined with the assessment for a top-of-the-line SUV of the same brand,” he added.

Apart from improved valuations, the ‘one ATRIG, one automobile’ policy likewise encourages clearer accountability. Each vehicle unit of importation will now be separately processed and issued individual releases, ultimately translating to better revenues for the government.

“This RMO revision is a promising start. It shows that even simple and well-calculated adjustments can translate into big results for the government,” Sena pointed out. “We hope that luxury car importers who are not yet compliant with RMO 21-2013 will soon make the necessary corrections. The loopholes have now been closed, and they owe it to law-abiding  tax-payers to do the right thing,” he concluded.