
Dear Atty. Angela,
On 15 July 2024, I purchased a luxury hybrid vehicle and paid the full amount. There was no prior notice given to me regarding the significant and substantial price reduction on the tariff already set to be implemented by the effectivity of Executive Order (EO) No. 62 signed and published on 20 June 2024. This EO 62 expanded product coverage of EO No. 12, to include other battery electric vehicles, hybrid electric vehicles, plug-in hybrid electric vehicles, at zero import duties. With this, the price of the vehicle I bought went down to more than P500,000. Is there a means by which I could get a refund of the excess tariff I paid?
Manuel
***
Dear Manuel,
EO 62 having been signed on 20 June 2024 officially took effect only on 20 July 2024, a month thereafter, in accordance with the publication requirements under the law.
Based on facts, your vehicle was purchased on 15 July 2024 which at the time, there was no existing law effectively reducing the price of hybrid electric vehicles. Notably, government mandate on price increase or reduction thereof is beyond automotive dealerships’ control. The date of your purchase is not within the coverage of the law’s effectivity which may be considered as basis for rebate or price reduction adjustment on hybrid cars.
However, you may opt to write a letter-request to the dealership where you purchased the luxury vehicle and they may extend consideration on your request considering that the price reduction of the vehicle is so significant and substantial that it somehow obligates the dealership to exercise utmost diligence in informing customers of the scheduled price reduction.
Nonetheless, you could argue that the failure to notify and exercise prudence in providing you the information on tariff reduction tantamounts to deception and unfair sales acts violative of consumer rights under Republic Act 7394, known as the Consumer Protection Act. In this scenario, you could file a case against the dealership with the Department of Trade and Industry.
Atty. Angela Antonio