The first batch of tax reforms proposed by the Department of Finance (DOF), which includes an increase in automotive excise taxes, has passed the House on its third and final reading. Is it finally time to head over to the nearest car dealership?
According to a report by Rappler, 246 members of congress voted to approve House Bill No. 5636 earlier today. Only nine lawmakers voted no, and one chose to abstain. The bill was certified 'urgent' by President Rodrigo Duterte two days ago, allowing the house to bypass the 'three-day rule' between the second and third readings.
Depending on the model and segment, car buyers could pay up to millions of pesos more for a new vehicle. Besides the increase in car taxes, the proposal also places increased taxes on fuel products such as diesel, gasoline, and lubricating oils. Excluded from the bill are trucks, buses, jeepneys, and other special purpose vehicles. You can read more on the proposal in our previous report here.
The development comes less than a month after the proposal passed the House Committee on Ways and Means. House Bill No. 5636 will now make its way to the Senate, where it will undergo another three readings prior to being sent to the Office of the President. Will you be purchasing a brand-new car before then?