Deadline for excise tax payments lapses BIR ready to seize untaxed car imports

MANILA, Philippines - After today, imported vehicles without proof of tax payment from the Bureau of Internal Revenue (BIR) will be confiscated and their owners will be sued.

This warning was issued after the expiration today of an extended deadline for a program that provided leeway to car importers to pay excise taxes for their shipments that are already in the country.

“There will be no more extension. So, I’m sorry to them but we will confiscate whatever we found that has not registered,” Internal Revenue Commissioner Kim Henares said by phone yesterday.

By law, excise taxes should be settled by vehicle importers before they can be released by the Bureau of Customs.

Under Revenue Regulations 2-2016 issued last March, the tax agency said it has observed a “significant number” of vehicles without the required Authority to Release Imported Goods (ATRIG).

Initially, they were given until March 31 to settle their dues, plus applicable surcharge and interest. This was later on extended to April 30.

Based on initial reports, however, Henares said “it seemed like only a few took the opportunity to pay” their taxes. She did not cite data.

She said the BIR is coordinating with Customs and the Land Transportation Office (LTO) to track down automobiles without ATRIG.

Earlier, Henares said these vehicles are usually high-end cars like Ferrari and Lamborghini that were shipped into the country from a non official distributor.

Customs has not yet responded to queries as of press time. LTO officials could not be reached for comment.

“They were given enough time to register. It is not my fault anymore if we run after them for not doing their responsibility,” Henares said.

In January, BIR collected P129.65 billion, seven percent up year-on-year, but below the P162.27-billion goal for the month.

The BIR, which accounts for around 80 percent of state revenues, is tasked to collect P2.03 trillion this year.