NEWSFLASH

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TRADE DEPT WANTS AUV TAX-EXEMPT

Manila, Dec. 15, 1997 - The Department of Trade and Industry wants Asian Utility Vehicles (AUV) priced less than P1 million to be excluded from paying excise tax.

AUVs are vehicles originally designed in the Philippines and have a high local value-added. Among the top selling brands are the Toyota Tamaraw FX and the Isuzu Hi-Lander.

Assemblers explained that the imposition of an excise tax would force them to raise prices which could discourage buyers from making purchases and dampen further the already depressed local automotive market.

The DTI Secretary Cesar Bautista said his office is recommending that the AUV not be covered by the excise tax "because it will run counter to industrial development strategy, and curtail the country's efforts to encourage the development of home grown vehicles."

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