The Senate has approved on second reading a bill imposing an excise tax on Asian utility vehicles (AUVs) and revising the tax on automobiles from engine displacement and seating capacity to manufacturers’ net price.
Camacho said that since the bill was not classified as "urgent," it was shelved until Congress begins its third and last regular session on July 28. The Senate and the House are then expected to reconcile their respective versions of the measure.
"That is the technicality (that caused the suspension of hearings). We missed it," he said.
However, the finance secretary admitted that the effort might be useless since most of the legislators has already gone on vacation. "We do not know if Congress can assemble a quorum."
The Senate-approved rates are two percent for automobiles with a manufacturer’s price of not more than P600,00; P12,000 plus 20 percent in excess of P600,000 for those costing more than P600,000 up to P1 million; P92,000 plus 100 percent in excess of P1 million for those in the P1 million-p2 million bracket, and P1,092,000 plus 150 percent in excess of P2 million for those costing more than P2 million.
While the measure puts AUV and SUVs under the coverage of the excise tax, the measure reduces the rates on cars.