We don’t want to cause panic here, but if you’re considering buying a pickup, you might want to think about pulling the trigger at your dealership sooner rather than later.
Top Gear Philippines was able to get hold of the Department of Finance’s (DOF) “fiscal consolidation and resource mobilization plan” for the incoming administration, and it looks like pickup-truck and motorcycle buyers—as well as vehicle owners—stand to lose a lot if it pushes through.
Under the agency’s proposal, the following measures will be implemented:
DOF proposed tax reforms
- A reform of the Motor Vehicle User’s Charge (MVUC)
- The repeal of excise tax exemption on pickups
- The imposition of excise taxes on motorcycles
All of these changes are part of ‘Package 1’ under the proposal and are potentially set to kick in sometime in 2023. The DOF’s presentation says its Package 1 reforms “already have existing bills, or have already been sufficiently discussed in Congress.”
The agency also goes into detail on some of the proposed tax reforms. The DOF says that altering the MVUC can result in an extra P38.3 billion of income for the government every year.
Repealing the excise tax exemption for trucks, meanwhile, will net the next administration an additional P19.2 billion in annual income. In total, Package 1 of the DOF fiscal consolidation and resource mobilization plan is estimated to generate an average of P247.8 billion in income per year.
In a statement, finance secretary Carlos Dominguez III expressed hope that the new administration will see the urgency in passing these proposed tax reforms.
“We are optimistic that the incoming administration and our next set of legislators will recognize the importance and urgency of these measures and implement them at the soonest time possible,” the official said.
Well, there you have it. Brace yourselves, people.
Top Gear Philippines is now on Quento! Click here to download the app and enjoy more articles and videos from Top Gear Philippines and your favorite websites.