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Philippine Government Sets New Regulations for AUV

According to new BIR rules, the Toyota Revo (top), Isuzu Crosswind (bottom), Honda CR-V and the Mitsubishi Adventure don't count as AUVs anymore.

MANILA - The government has come up with new regulations prescribing minimum seat measurements for Asian utility vehicles (AUV) exempted from an excise tax ranging from 15 per cent up to 100 per cent.

To qualify for an exemption, AUVs must seat at least 10 passengers with the passenger seats measuring at least 60 by 35 centimeters and at least 50 by 60 centimeters for the driver or operator.

Under the new crafted revenue regulation, AUVs failing to measure up to these standards must pay an excise tax rate of up to 100 per cent depending on its engine size or displacement.

Officials, who requested to remain anonymous, said the Toyota Revo and Tamaraw FX, Isuzu Crosswind and Hi-Lander, Mitsubishi Adventure, and Honda CR-V are bound to lose their tax exempt status under the new regulations.

The new rules do not now count as one seat so called half seats that in the past were basis for exemption of the excise tax.

"Half seats shall not be counted as one passenger seat even if there are multiples of half seats. Thus, a utility vehicle with nine and one-half seats or nine and two half-seats and so on shall be considered as an automobile subject to ad valorem tax," the regulations, released by the Bureau of Internal Revenue, said.

"Any seat space without the corresponding seat spaces, leg and head rooms, even if it meets the area measurements, shall not be counted as a passenger seat," the BIR added.

Light commercial vehicles (LCVs) that include the highly popular sport utility vehicles (SUVs), special purpose vehicles, trucks, jeeps, jeepneys and buses are also subject to the new regulations.

The regulations take effect 15 days from publication in a nationally circulated newspaper, the BIR said.

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