The Bureau of Customs has finally done one right thing – release 600,000 license plates to the LTO that they have seized after the plates’ consignee failed to pay taxes and duties.
The consignee, Knieriem BV Goes and Power Plates Development Concept Inc. (JKG-PPI) owed Customs PhP 40M, leading Customs to keep the plates on hold. The seized plates included both new and replacement plates.
The LTO required all vehicles to adopt the new plate scheme, requiring those renewing registration to pay for replacement plates starting 2015. However, the LTO has failed to deliver on these plates with a Senate report claiming a plate backlog of 3,000,000.
Customs and LTO have apparently settled for an “intra government payment” plan to facilitate the turnover. As always, Filipino tax payers and car owners are left to take the gut punch.