Top Gear Philippines

If you've been thinking about buying a brand-new car, now might be a good time to sign on the dotted line. The House Committee on Ways and Means has just approved the tax reform package proposed by the Department of Finance.

Lawmakers gave their approval on the package yesterday after holding a technical working group meeting on Wednesday. Included in this package is the proposed increased in automobile excise taxes. The package will now proceed to a second reading at the House plenary.

According to the substitute bill that was approved at the committe level (a copy of which we obtained from industry sources), the taxes that will be imposed on automobiles are as follows:

 Importer Selling Price  Excise tax effective Jan 1, 2018 Excise tax effective Jan 1, 2019
 Up to P600,000 3.00% 4.00%
 P600,000 to P1.1 million 18k + 30% of value in excess of 600k 24k + 40% of value in excess of 600k
 P1.1 million to P2.1 million P168,000 + 50% of value in excess of P1.1 million P224,000 + 60% of value in excess of P1.1 million
 P2.1 million to P3.1 million P668,000 + 80% of value in excess of P2.1 million P824,000 + 100% of value in excess of P2.1 million
 Over P3.1 million P1,468,000 + 90% of value in excess of P3.1 million P1,824,000 + 120% of value in excess of P3.1 million

The bill classifies automobiles as any four- or more wheeled motor vehicle regardless of seating capacity, powered by diesel, gasoline, or any other source except pure electricity and hybrid technology. The bill excludes buses, trucks, jeepneys, cargo vans, single cab chassis vehicles, and other special purpose vehicles.

What do you guys make of this recent development?

Jason Tulio
Staff Writer
Like most guys, Jason inherited his love for cars from watching his dad talk about and tinker with them while he was growing up. Since then, he has leveled up into the roles of motoring journalist/wannabe mechanic/concerned motorist.
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