Oreta seeks probe on car excise tax

Opposition Sen. Tessie Aquino-Oreta has sought a Senate inquiry into how the government is imposing excise taxes on motor vehicles.

In filing Resolution 546, Oreta said the Senate should find out whether the tax scheme is "uniform and equitable to all vehicle assemblers and distributors."

She said recent newspaper reports indicate that certain car assemblers have taken advantage of some loopholes to dodge the payment of the correct taxes, resulting in lost government revenues amounting to billions of pesos.

She said such loopholes have apparently enabled the assemblers to price some sport utility vehicle (SUV) models lower than other SUVs.

Oreta was apparently referring to Honda’s CRV, formerly a SUV but which the Department of Finance and the Board of Investments have allowed to be classified as an Asian Utility Vehicle in the category of a Toyota Revo, a Mitsubishi Adventure and an Isuzu Hi-lander based on seating capacity.

CRV was categorized as a 10-seater instead of a five-seater, but no 10 adults or even children can really be accommodated in the Honda AUV.

According to Sen. Ramon Magsaysay Jr., CRV’s classification as an AUV has resulted in lost revenues of at least P1.2 billion. He apparently based his estimate on reports that Honda has sold 7,000 units of its "10-seater" AUV. – Jess Diaz