The Philippine Daily Inquirer reports that Representatives Maximo Rodriguez Jr. and Rufus Rodriguez are pushing to legalize the importation of used clothing or "ukay-ukay" to the Philippines so that the government can tax them.
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The report explained that under the proposal filed by the Rodriguez brothers in Congress, a 35 percent ad valorem tax will be imposed on used clothes shipped to the country, while a 40 percent ad valorem tax will be charged for other second-hand items. At present, the entry of ukay-ukay in the country is considered illegal under Republic Act 4653.
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Even though the importation of ukay-ukay is unlawful, the lawmakers noted that an estimated 1,000 containers of second-hand items are still shipped yearly to the Philippines, based on estimates from customs officials. The Bureau of Internal Revenue came up with a similar suggestion to tax ukay-ukay items in 2010 but business groups objected to it because legalizing the entry of these items "would kill the local textile and garments industry."
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