Senator Sonny Angara on Thursday (June 15) stated increased excise taxes on luxurious automobiles proposed by Congress would solely give increased incentives for smuggling.

Angara echoed the priority of Senator Win Gatchalian of the rise of a black marketplace for luxurious automobiles that would undermine the tax reforms.

“I think it’s a valid concern kasi tulad ng sigarilyo at alak, nung tinaas natin yung sin tax, dumami din ang nag smuggling. So the same with any na nagmahal ang isang produkto, talagang may mga susubok na mag smuggle, magkaroon ng black or gray market,” the methods and means committee chair stated to reporters in an interview.

Angara stated that with out safeguards in opposition to smuggling, the tax hike on luxurious automobiles wouldn’t lead to increased revenues as anticipated by authorities.

Under the proposed new excise tax scheme for automobiles, automobiles costing greater than P2.1 million can be taxed P1.22 million plus 200 % of the quantity in extra of P2.1 million.

Source: politics.com.ph