MANILA, Philippines - The government is mulling the possibility of amending the excise tax for motor vehicles to attract more investments in the industry and fast track the creation of the Philippine brand vehicle.
Industry sources said a committee composed of the public and the private sector will study the effects of changing the excise tax for motor vehicles following the signing of the new Motor Vehicle Development Plan (MVDP) by President Arroyo.
The source said they would have to study whether or not the excise tax should be changed or not.
The committee will be composed of the Board of Investments (BOI), the Department of Finance (DOF) and representatives from the private sector.
The source said that the changes in the excise tax must not be against the law and the provisions of the World Trade Organization (WTO).
The discussions for the excise tax is expected to drag on as opposition from the DOF is expected for the lowering of the excise tax. The changes must take into consideration not only the welfare of the car companies but also the DOF which is the revenue collecting arm of the government.
The last time the excise tax was amended was six years ago in 2004. The source said there is really a need to review the provisions because the situation must have already changed.
Because of the expected discussions over the excise tax, this will not be included in the implementing rules and regulations (IRR) which will be crafted by the BOI and the private sector within 60 days of publication of the new MVDP. The MVDP has yet to be published.