Friday, March 6, 2009

Used Car Importers Denounce New Law

Importers of used vehicles are claiming that the new "first registration tax" law being discussed in Congress could cause the loss of thousands of jobs and the country's middle class to lose its ability to purchase cars. According to the Unions of Used Car Importers, the final price would rise considerably if the tax is approved.

The bill sets the tax rate at 26 percent per vehicle, according to the table that the Superintendency of Tax Administration (SAT) would develop once the legislation is adopted.

Alejandro Barrera, president of the union, said the used car business generates employment for about 800,000 people across the country who could lose their jobs. He explained that the law would not only affect importers but the whole chain involved in the process, from the company from which it is imported from the United States, to customs, business sales of tires, spare parts, automotive paint and upholstery, among others.

"In the midst of this economic crisis, this law would endanger the viability of many businesses," said group vice president, Francisco Giron.

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