Ban on used car imports bucked

Subic Freeport-based vehicle importers and auctioneers claim that government stands to lose billions of pesos in revenues if the importation of second-hand vehicles is banned.

During a hearing of the House sub-committee on Ways and Means, the Subic importers and auctioneers testified that the second-hand vehicle business contributes billions to the National Treasury in the form of taxes and duties collected by the Bureau of Customs, the Land Transportation Office and the Bureau of Internal Revenue.

However, no actual figures were presented to the House sub-committee vice-chaired by Rep. Jesli Lapuz.

Aside from the taxes and duties, the importers and auctioneers also provide revenues to the Subic Bay Metropolitan Authority (SBMA) in the form of lease/rental payments and other port-related fees.

Eddie Barretto, president of the Motor Vehicle Importers Association (MVIA) and Jenny Armamento of Asia International Auctioneers (AIA) testified on behalf of the importers and auctioneers.

They pointed out that aside from paying taxes and duties, lease/rental payments, port fees and such, importers and auctioneers also provide direct and indirect employment.

Barretto said that importers and auctioneers are able to provide economic activity to auto parts dealers, machine shops, car painting and repair outlets.

At the same time, Barretto went on, there is also a "trickle down" effect on the business of hotels, restaurants and other tourism facilities of Subic as a result of those attending the auctions.

The House sub-committee on Ways and Means conducted the hearing as part of its review of Customs and Tariff measures.