Earlier this year, the Department of Finance (DOF) proposed a series of measures aimed at gradually alleviating the country’s growing debt—among them, the removal of the excise tax exemption for pickups.
Well, it appears this will soon be more than just a proposal. The House committee on ways and means has approved the proposed removal of the excise tax exemption for pickups following a hearing held earlier today.
During the hearing, a letter from finance secretary Benjamin Diokno urging lawmakers to pass measures proposed by the DOF was read. In it, the official argued that pickups were originally granted the excise tax exemption because they were seen as “workhorses for small business owners and professionals in their livelihood.”
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Diokno explained, however, that authorities have observed that “manufacturers modify their pickups to serve as passenger, leisure, or sports utility vehicles.”
“This scheme allows manufacturers to circumvent the provision of the law and purpose of the exemption. Subjecting pickup trucks to excise tax will result in an estimated additional revenue of P52.6 billion from 2022 to 2026.”
So it looks like this measure is finally gaining some steam. From here, it will be tackled by the Senate and await the president’s signature. Are you in favor of this?