Gov’t losing millions due to sale of bogus CTPLs

The Philippine Chamber of Commerce and Industry (PCCI), the country’s largest business group, said the government is losing millions of pesos in uncollected taxes because of the widespread sale of fake compulsory third party liability (CTPL) insurance policies.

PCCI president Edgardo G. Lacson said millions of pesos in lost revenues could fund vital infrastructure projects needed to keep the economy growing during these hard times.

Likewise, he said vehicle owners lose billions because they purchase fake CTPLs.

“Fake CTPLs have been the bane of motor vehicle owners for many decades now. Thus, the PCCI supports a reformed CTPL system that will address the very core of the problem,” he said.

Data from the Insurance Commission show that nearly half of the CTPLs sold under the old system are fakes. In 2003, P2.5 billion worth of CTPL premiums for 4.3 million vehicles were collected, but only P1.38 billion were reported to the IC.

Lacson said the sale of fake CTPLs is worse than the sale of pirated discs like CDs and DVDs because fake CTPLs are passed off as genuine and buyers pay premium price for them.

“Whether fake CTPLs or pirated discs, the PCCI will be the first to put its foot down on opportunistic business activities,” he said.

Meanwhile, PCCI said the government must leave the sale of CTPL to the private sector.

 “Moreover, PCCI believes that business is best left by the government to the private sector but it would never tolerate private enterprises that dupe the public,” Lacson said.

“Likewise, we take note that under a reformed CTPL system, private insurance firms will retain the bulk of the CTPL business, and that government will, for most part, will only act as guarantor that the CTPLs sold under the system are genuine,” he added. — Ma. Elisa Osorio