Solon seeks inquiry on Bugatti smuggling to address Phl revenue leakage

A Senate resolution was filed on Monday to investigate the reported smuggling of two Bugatti Chiron sports cars in the Philippines to address revenue leakage. 

Senator Win Gatchalian filed the proposed Senate Resolution No. 954 which seeks to put an end to the outright smuggling of luxury sports cars into the country by introducing remedial legislation.

Gatchalian, who chairs the Senate Committee on Ways and Means, lamented the two luxury sports cars, identified as a blue Bugatti with license plate NIM 5448 and a red Bugatti with license plate NIM 5450, did not go through regular customs clearance. 

In a previous public hearing, the Management Information System and Technology Group of the Bureau of Customs (BOC) confirmed the cars were able to enter the country sans import documents. 

“There is a need to determine the lapses and loopholes in government processes that lead to the continuous persistence of outright smuggling of luxury items in the country, including cars, that deprives the government of much-needed revenues and poses a serious and great threat to the national economy,” Gatchalian said. 

He noted an investigation would enable the government to assess the scale of car smuggling in the country.  

It would also enhance border control measures, deploy cutting-edge methods and technologies to combat luxury car smuggling, and address tax leakages, he added. 

In November last year, BOC conducted an investigation into reports that the said luxury vehicles entered the country without going through regular customs clearance. 

Subsequently, it issued a warrant of seizure against the two undocumented Bugatti Chiron vehicles, which were seen being used around Metro Manila and adjacent cities.

The two luxury vehicles were each worth P165-million each. These were registered under a certain Menguin Zhu and a certain Thru Trang Nguyen. The owners allegedly did not comply with the customs duties and taxes. 

At 50 percent excise tax, Gatchalian said the government should have collected P165-million from the importation of the two vehicles.

“We should not let these activities slide because this is a big reduction in the taxes that the government should be collecting and we need to implement projects that will strengthen the economy and advance Filipinos,” Gatchalian said in Filipino.