In the Philippines, purchasing an imported luxury car requires the buyer to pay another 30% of the price for customs duties, 12% for the value added tax (VAT) and 100% for the ad valorem tax or specific tax. Thus, a Porsche that is worth $100,000 or P4.5 million must be purchased for approximately P11 million.
However, sources claim that some luxury cars are being sold with a lower tax fee in the “gray market.” What is the “gray market” and why it is being patronized? Moreover, the Bureau of Customs is also allegedly accepting bribe from some dealers to let them sell smuggled cars. How true are these allegations?
Don’t miss this full report in “Failon Ngayon” this Saturday (March 9), 4:45 PM, after SOCO on ABS-CBN with a replay on ANC every Sunday, 2PM. Visit its Facebook page at www.facebook.com/failon.ngayon and follow it on Twitter via @Failon_Ngayon. Tweet your thoughts and reaction this weekend using the hashtag #FNcars.
