DTI to stop collection of safeguard taxes on imported cars
One of the largest issues that faced the Philippine automotive industry during the pandemic is the imposition of safeguard duties by the Department of Trade and Industry (DTI) on vehicle imports.
Good news for future car buyers though as the DTI will finally stop collecting these safeguard taxes after the Tariff Commission (TC) recommended that the collection be stopped after conducting a formal investigation.
According to a report by the Philippine Star, in its final report on the formal investigation on the imposition of safeguard measures against passenger car (PC) and light commercial vehicle (LCV) imports, the TC said it has terminated its investigation and recommended that no definitive safeguard measure be imposed on vehicle imports.
Earlier this year, the DTI announced the imposition of safeguard duties on imported vehicles after the Philippine Metalworks Alliance claimed that imported vehicles are harming the local automotive manufacturing industry. A safeguard bond of Php 70,000 per imported unit was imposed on PC’s, which include sedans and SUV’s, while for LCV’s, which include pick-up trucks, a Php 110,000 safeguard bond per imported unit.
For those who already paid the safeguard bonds with their new car purchase, expect car companies to soon give refunds equivalent to the amount of the bonds. Also expect for new car buyers that some car companies may decrease their vehicle’s prices if they increased their prices due to the safeguard bonds.
