Tax adjustments steer auto sales

The year 2003 was an interesting period for the automotive industry. The anticipated restructuring of automotive taxes steered the direction of sales for both passenger car and commercial vehicle segments.

Commercial vehicle sales in 2003 increased by 6.6% to 68,015 units from 63,859 units in 2002. Commercial vehicle sales in the first three quarters was up on account of advanced purchases, as car buyers tried to beat the scheduled implementation of the auto excise tax law (RA 9224) which was then perceived to have the implication of increasing prices of the segment’s best-sellers, the Asian Utility Vehicles (AUVs), and even the high-end Sports Utility Vehicles (SUVs). The new excise tax law, which finally took effect in October, removed the excise tax-exempt status of AUVs while slapping higher tax rates to more expensive vehicles like the SUVs. Thus, starting October, commercial vehicle sales weakened and suffered in competition with the passenger car segment, and registered declining growth.

On the other hand, passenger car sales started to climb up in the month as car dealers started to offer post-excise tax law prices, which were lower because of the said law’s graduated/socialized tax rates benefiting the low to middle-end passenger car models. For the whole of 2003, passenger cars sold totaled 24,321 units, 11.9% higher than 2002’s 21,728 units.

Overall, the industry sold a total of 92,336 vehicles in 2003, registering a 7.9% growth from the 85,587 units sold in 2002.

Philippines, Japan to promote IT initiative

Both the governments of Japan and the Philippines have agreed to collaborate in developing their respective information technology sectors and in promoting Asia as one of the world’s major IT hubs.

Japan’s Office of the Minister of State and the Department of Trade and Industry said the two countries were set to create programs and share knowledge on IT development in support of the so-called Asia IT Initiative.

Both governments will tap their private industries and the academe to help push through with the IT-promotion initiative, which they expect to significantly contribute to the development of both countries’ economies.

Meanwhile, the Japan International Cooperation Agency (JICA) has also launched three programs that are aimed at upgrading the skills of Filipino IT professionals. The programs were first offered by Japanese Prime Minister Junichiro Koizumi during President Gloria Macapagal-Arroyo’s state visit to Japan in December 2002. The programs include the establishment by mid-2004 of the Nihongo Center Foundation, the Japanese IT Standard Examination (JITSE) Training/Review, and the IT Training Center.

The Nihongo Center Foundation will train Filipino IT professionals on the Japanese language, while the JITSE Training/Review will help Filipino engineers pass the JITSE examination, which accredits engineers to work in Japan. The IT Training Center will train students to become IT engineers.

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