Gov’t eyes P1.4B from LTO program on imported cars

The government could earn up to P1.4 billion in fresh revenues once the owners of over 3,000 imported vehicles that were able to register their vehicles with the Land Transportation Office (LTO) this year, despite having questionable documents, will avail of the voluntary disclosure program (VDP).

Presidential Anti Smuggling Group (PASG) head Undersecretary Antonio Villar Jr., said the VDP provides the window for all owners of imported vehicles who were able to register with the LTO even without the certificate of payment (CP), or their CP’s were undervalued, to facilitate the renewal of their vehicle registration by voluntarily paying the right duties and taxes on their vehicles.

“There are thousands of LTO registered imported vehicles now traversing our roads and many of them do not have CPs or were undervalued.   If they will avail of the VDP and pay the right taxes of their imported vehicles, they will be able to help the government earn over a billion pesos in revenues,” Villar said.

He said the PASG is currently running after owners of imported vehicles suspected to be undervalued. Those caught with undervalued imported cars can find their vehicles seized in favor of the government.

Availing of the VDP, would allow owners of such vehicles from paying fines and possible charges, he said.

He said PASG is working closely with the LTO in identifying the imported vehicles that were able to register with the LTO particularly those without CPs or undervalued CPs.

The CP is being issued by the Bureau of Customs (BOC) after taxes have been paid on imported vehicles. It is a requirement for registration of imported vehicles with the LTO.

The anti-smuggling czar likewise said that some importers undervalue or misdeclared their vehicles to avoid paying the right taxes on imported vehicles. Or worse, they do a “swing” or not paying a single centavo in taxes at all.

Undervaluation on imported vehicle lowers the taxable amount by declaring the vehicle as an old model, even if a brand new unit is actually being brought in. On the other hand, misdeclaration lowers the taxable amount on imported vehicles by declaring an incoming completely built unit (CBU) as a completely knocked down (CKD) unit, or by just declaring the vehicle as an imported engine or chassis (popularly known as “chop-chop”).

For his part, PASG director for intelligence Jaih Francia said the 3,000 imported vehicles that were registered with the LTO this year with no CPs or questionable CPs are mostly 2004 to 2007 high end luxury model cars like Mercedez Benz, BMW and Porche, among others.

“You cannot avoid paying the right taxes on your imported vehicles as they are all in your LTO records. Your Certificate of Payment will show whether you have undervalued or misdeclared your imported vehicles,” Villar said in reminding the concerned owners of imported vehicles now registered with the LTO.

“However, you can avoid the corresponding penalties by availing of the Voluntary Disclosure Program,” he said.

He said owners of registered imported vehicles with questionable CPs may contact the PASG, LTO and the BOC to avail of the VDP.

Villar said that as soon as the PASG and LTO are able to finalize its investigation on the imported vehicles now registered with the LTO, PASG will undertake the necessary steps, together with the other concerned government agencies, to institute measures to facilitate the collection of exact duties and taxes on these vehicles.