It seems like the revised proposal of the country’s economic managers to raise excise tax on new cars, especially on high-end models will be pushing through after the Department of Trade and Industry (DTI) supports the move.
Last week, Trade Secretary Ramon Lopez said that his organization is backing up the Department of Finance’s (DOF) proposed plan to raise tax on cars progressively. The proposal, which will be based on price brackets of cars, will include a steep increase for cars priced at P2.1 million and above. From initial information, the DOF wants to raise automobile tax on all segments, starting with an increase of 2% on vehicles priced under P600,000 and rising from there.
The automobile industry in the Philippines have already expressed their concerns regarding this plan, shall it comes to fruition. But Lopez explains that most of the people buying luxury cars do not really care much about the price tag of their purchase given that they have the ability to pay for it.
“Buyers in this market no longer ask what the price of a vehicle is because they can afford to buy it… The industry will not die,” Lopez reasoned out, as quoted by Rappler.”We really have to pass the comprehensive tax reform package… There will be a lot of good things that will happen if we do.”
