Probe fails to settle import row

The Board of Investments (BOI) clashed with Hyundai Asia Resources Inc. (Hari) in Congress yesterday, following an allegation that the car company avoided paying higher taxes on some of its imports.

The House of Representatives held its first inquiry in aid of legislation yesterday in light of the case against Hari, aiming to assess if the motor vehicle development program (MVDP)—under which Hari is registered—is effective in reviving the local automotive industry.

While it was also supposed to look at MVDP as a policy, a large part of the session revolved around the ongoing case against Hyundai’s official importer and distributor here in the Philippines.

Lawmakers blamed the BOI for its failure to set clear-cut rules to guide investors and questionable decisions on issues affecting the industry.

Deputy Speaker Sharon Garin (AAMBIS-OWA Partylist) went as far as publicly airing suspicions that the BOI harbored biases against non-Japanese local assemblers and new players in the industry.

On the other hand, Representatives Lyndia Bolilia (NPC, Batangas), Rodel Batocabe (Ako Bicol Partylist) and Manuel Zubiri (NUP, Bukidnon) warned that unless the government cleared all gray areas in the implementation of rules and regulations of the MVDP, the Philippines would continue to lag behind its Asean neighbors in local automotive manufacturing.

Garin said BOI’s show of animosity toward a newcomer, but willing investor in the car manufacturing industry adversely affected the country’s investment climate.

“What you are doing is discouraging them from participating in the MVDP program. It’s quite disappointing,” she added.

Cua ordered an ocular inspection of the HARI assembly plant in Sta. Rosa, Laguna, to confirm whether or not BOI’s claims against the company were accurate.

In the meantime, BOI should clarify its rules and set clear legal procedures that will govern the MVDP, said Batocabe and Bolilia.