Senate eyes ‘lemon law’ as companion measure to bill lowering vehicle taxes

The Senate is eyeing the passage of an anti-lemon bill that will protect buyers of defective vehicles as a companion measure to a proposed law lowering vehicle tax.

The price of getting tax relief is the responsibility to sell quality cars, Sen. Ralph Recto said, in announcing that the Senate trade and industry committee which he chairs will soon call hearings on a proposed "lemon law."

Several bills which guarantee the right of buyers to a refund or replacement of defective vehicles are pending in the Upper Chamber.

In view of an emerging consensus in the Senate ways and means committee to recommend a price-based tax scheme for automobiles, which will lead to lower car prices, Recto said there should also be legislation protecting rights of car buyers.

"Our message to vehicle manufacturers is this: ‘Alright, we will revamp the outdated tax structure in your sector but the time has come for a lemon law in the Philippines. You get tax incentive but the consumers get protection," he said.

While the Consumers Act, or Republic Act 7394, provides means of redress for consumers, and has been successfully invoked in appliances, the law has not been effective as a weapon to demand refund or replacement for cars with factory defects.

Recto said government can no longer close its eyes to mounting complaints against defective automobiles as shown by the 81 complaints the Department of Trade and Industry had received from auto consumers from January to June 2002.