Here are the estimated prices of every mainstream PH pickup after excise taxes are applied

We crunched the numbers
by Kat Chua | Sep 19, 2022
Image of pickups
PHOTO: TopGear.com.ph

In 2017, the government imposed new excise tax rules on all automotive vehicles. The ruling—which spurred a buying spree prior to its implementation—essentially reduced the taxes paid for lower-priced vehicles, but raised taxes for models in the upper bracket. 

During the 2017 round of tax reforms, pickups were granted full exemption from excise tax because the government believed these vehicles are the “workhorses” of small businesses. The decision stemmed from the government’s desire to support the growth of micro, small, and medium entrepreneurs (MSMEs). 

Lately, however, some government officials have begun changing their tune. Just last month, the Department of Finance (DOF)—along with the Department of Trade and Industry (DTI)—started pushing for the removal of this exemption.

In a letter to the House of Representatives, the DOF said the DTI has observed that manufacturers modify pickup trucks to serve as passenger, leisure, or sports utility vehicles

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“This scheme allows manufacturers to circumvent the provision of the law and purpose of the exemption,” finance secretary Benjamin Diokno said.

Should this be signed into law, the new excise taxes on pickup sales will give the government an additional P53 billion in revenue. So, how much is the damage per unit should this proposal be passed into law? Let’s break down the numbers. 

Under the 2017 tax reform, the adjustment of automobile tax rates are as follows:

Excise tax brackets

  • 4% (for automobiles up to P600,000)
  • 10% (for automobiles above P600,000 to 1 million)
  • 20% (for automobiles above P1 million to 4 million)
  • 50% (for automobiles above P4 million)

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In the case of pickups priced above P1 million, taxes would amount to 20% of the net manufacturing price. This means that a P1 million pickup unit would be priced at P1.2 million following the removal of the excise tax exemption. 

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Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort told Top Gear Philippines that a repeat of the 2017 “front-loading” of purchases before the effectiveness of these higher taxes may happen.

Ricafort, however, warned of a possible constraint: the lack of supply for some models due to some disruptions in the global supply chains since the pandemic started. 

Think you can avoid all the price increases by buying secondhand? Not really. All these developments in the brand-new pickup segment are also expected to affect prices in the secondhand market. 

“Higher taxes that lead to higher prices coupled with supply constraints would also lead to increased demand in the used/secondhand market for pickup trucks and other utility vehicles. This could also lead to higher prices in used vehicles, ” the economist said.

Currently, the bill is in the Lower House and still has a long way to go before being passed into law. But the Philippine automotive industry has already expressed concern about the potential impact on pickup demand. 

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Top Gear Philippines has compiled an estimated guide on the potential price increases of pickup units should the exemption actually be lifted.

To come up with these figures, we first subtracted the 12% value-added tax (VAT) from the pickups’ SRPs. This is because the excise tax is applied before VAT is implemented. From there, we added the excise tax corresponding to the price of each model (10% for units below P1 million and 20% for those above).

Once we determined the price of each truck with the new excise tax applied, we then applied the 12% VAT and computed the price difference.

Estimated PH pickup prices with excise taxes applied:

Toyota Hilux

Variant Current SRP Estimated SRP with excise tax Price difference
Hilux Conquest 2.8 4x4 AT - Super White Il P1,919,000 P2,302,800 P383,800
Hilux Conquest 2.8 4x4 AT - Emotional Red P1,939,000 P2,326,800 P387,800
Hilux Conquest 2.8 4x4 MT - Super White II P1,844,000 P2,212,800 P368,800
Hilux Conquest 2.8 4x4 MT - Emotional Red P1,864,000 P2,236,800 P372,800
Hilux Conquest 2.4 4x2 AT - Super White Il P1,544,000 P1,852,800 P308,800
Hilux Conquest 2.4 4x2 AT - Emotional Red P1,564,000 P1,876,800 P312,800
Hilux Conquest 2.4 4x2 MT - Super White II P1,468,000 P1,761,600 P293,600
Hilux Conquest 2.4 4x2 MT - Emotional Red P1,488,000 P1,785,600 P297,600
Hilux 2.4 G 4x2 AT - Attitude Black Mica P1,361,000 P1,633,200 P272,200
Hilux 2.4 G 4x2 MT - Attitude Black Mica P1,285,000 P1,542,000 P257,000
Hilux 2.4 E 4x2 MT Silver Metallic 3 P1,156,000 P1,387,200 P231,200
Hilux GR-S
Hilux 2.8 4x4 AT - Super White II P2,039,000 P2,446,800 P407,800
Hilux 2.8 4x4 AT - Emotional Red P2,059,000 P2,470,800 P411,800
Hilux Fleet
Hilux 2.4 J 4x4 MT - Super White II P1,169,000 P1,402,800 P233,800
Hilux 2.4 J 4X2 MT - Super White II P971,000 P1,068,100 P97,100
Hilux 2.4 4x2 Cab & Chassis MT - Super White II P861,000 P947,100 P86,100
Hilux 2.4 4x2 FX w/ Rear Aircon MT - Super White II P1,088,000 P1,196,800 P108,800
Hilux 2.4 4x2 Cargo MT - Super White II P965,000 P1,061,500 P96,500

Ford Ranger

Variant Current SRP Estimated SRP with excise tax Price difference
Ranger 2.0L Turbo XL 4X4 MT P1,198,000 P1,437,600 P239,600
Ranger 2.0L Turbo XLS 4x2 MT P1,198,000 P1,437,600 P239,600
Ranger 2.0L Turbo XLS 4x2 AT P1,273,000 P1,527,600 P254,600
Ranger 2.0L Turbo XLT 4x2 AT P1,374,000 P1,648,800 P274,800
Ranger 2.0L Turbo Sport 4x2 AT P1,474,000 P1,768,800 P294,800
Ranger 2.0L Turbo Sport 4x4 AT P1,594,000 P1,912,800 P318,800
Ranger 2.0L Turbo Wildtrak 4x2 AT P1,569,000 P1,882,800 P313,800
Ranger 2.0L Bi-Turbo Wildtrak 4x4 AT P1,875,000 P2,250,000 P375,000

Isuzu D-Max

Variant Current SRP Estimated SRP with excise tax Price difference
D-Max 3.0 LT 4X4 MT P1,288,000 P1,545,600 P257,600
D-Max RZ4E 4X2 SINGLE CAB MT P857,000 P942,700 P85,700
D-Max RZ4E LT 4x2 MT P987,000 P1,085,700 P98,700
D-Max 3.0 4X4 LS-E AT P1,825,000 P2,190,000 P365,000
D-Max 3.0 4X4 LS MT P1,630,000 P1,956,000 P326,000
D-Max 3.0 LS-A 4x2 AT P1,390,000 P1,668,000 P278,000
D-Max 3.0 4X2 LS MT P1,320,000 P1,584,000 P264,000
D-Max RZ4E LS 4x2 AT P1,309,000 P1,570,800 P261,800
D-Max RZ4E LS 4x2 MT P1,219,000 P1,462,800 P243,800

Nissan Navara

Variant Current SRP Estimated SRP with excise tax Price difference
Navara 2.5 EL 4X2 MT P1,041,000 P1,145,100 P104,100
Navara 2.5 VE Calibre 4X2 MT P1,261,000 P1,513,200 P252,200
Navara 2.5 VE Calibre 4X2 AT P1,351,000 P1,621,200 P270,200
Navara 2.5 VL Calibre 4x2 AT P1,491,000 P1,789,200 P298,200
Navara 2.5 Calibre-X AT 4x2 P1,526,000 P1,831,200 P305,200
Navara 2.5 VE 4X4 MT P1,391,000 P1,669,200 P278,200
Navara 2.5 VE 4X4 MT P1,591,000 P1,909,200 P318,200
Navara 2.5 VL 4x4 AT P1,671,000 P2,005,200 P334,200
Navara 2.5 Pro-4X 4X4 AT P1,781,000 P2,137,200 P356,200

Mitsubishi Strada

Variant Current SRP Estimated SRP with excise tax Price difference
Strada Athlete 4WD AT P1,818,000 P2,181,600 P363,600
Strada Athlete 2WD AT P1,487,000 P1,784,400 P297,400
Strada GLS 4WD MT P1,522,000 P1,826,400 P304,400
Strada GLS 2WD AT P1,368,000 P1,641,600 P273,600
Strada GLS 2WD MT P1,293,000 P1,551,600 P258,600
Strada GL 4WD P1,205,000 P1,446,000 P241,000
Strada GL 2WD P1,028,000 P1,130,800 P102,800

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PHOTO: TopGear.com.ph
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