Auto makers criticize Subic importers

By Elaine Ruzul S. Ramos

 

The local automotive industry slammed Subic Bay-based importers of used vehicles for underdeclaring the value of the units they ship in, convert to left-hand drive and later sell to the domestic market.

 

In a press conference, local car assemblers, parts manufacturers and auto industry workers said the continued entry of imported used vehicles into the country would further discourage investments in the industry and could lead to more jobs displaced.

 

Documents showed by the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) showed that Subic importers rake in huge profits from the sale of these imported used cars.

For example, a second-hand Toyota Prado is being sold from P360,000 to P900,000, depending on the model year. But the declared acquisition cost of the 2003 Prado is only $1,000 or P56,000. Based on the declared value, the importer only pays P34,022 in taxes, which means profits of around P339,978 for each vehicle.

 

A new Prado these days cost P2.7 million, which also meant a huge discount for buyers of second-hand vehicles.

 

“Looking at the documents, I am outraged. The local industry is pouring in investments, and we ensure that employees have benefits and there are these few who can circumvent everything just because they are well-connected,” said George Blaylock, president of the Philippine Automotive Association.

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