Excise Tax? When June 2017 or 2018?

[dos2]

Well I guess nobody knows or read about it for now, unlike some details such as increasing the non taxable bonus from 82K to 90K which was mentioned publicly.

[attorney]

From a friend in Senate:

Final auto excise
-4% up to 600k
- 10% for over P600,000 to 1M
- 20% for over 1M up to P4M
- 50% for over P4M

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[Verbl Kint]

Got word from a little mouse that the excise tax for automobiles has been finalized and it will be a hybrid of the Senate and House version:

Net Retail Price	Fixed Tax	Marginal Tax
>₱600k	-	4%
₱600k to ₱1M	-	10%
₱1M to ₱4M	-	20%
> ₱4M	-	50%

What does it mean? Cars ₱1M to ₱3.99M will actually be cheaper. Cars below ₱1M and above ₱4M will be more expensive.

[monty_GTV]

mabuti nga mapirmahan at ng ma-implement na ng matigil na panggugulang ng mga car dealerships at mga abusadong ahente nila.

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[pobre24]

mabuti nga mapirmahan at ng ma-implement na ng matigil na panggugulang ng mga car dealerships at mga abusadong ahente nila.

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Just curious, how can this curb abuses of the dealer and agents?

[papi smith]

Correction, Cars ₱1.7M to ₱3.99M will actually be cheaper. Cars between ₱1.0M to 1.6M will be the ones to get affected.

Under the current scheme for example, cars between 1.1M -1.2M are taxed at 10.18% - 12.67%, under that scheme, they are automatically slapped a 20% tax.

What does it mean? Cars ₱1M to ₱3.99M will actually be cheaper. Cars below ₱1M and above ₱4M will be more expensive.

[Bravoexo]

Just curious, how can this curb abuses of the dealer and agents?

Less demand.

[pobre24]

Less demand.

Got it. thanks for clarifying

[pobre24]

Correction, Cars ₱1.7M to ₱3.99M will actually be cheaper. Cars between ₱1.0M to 1.6M will be the ones to get affected.

Under the current scheme for example, cars between 1.1M -1.2M are taxed at 10.18% - 12.67%, under that scheme, they are automatically slapped a 20% tax.

correct.
I guess the middle class will take one for the team. 600k-1.6M range

[Tydurden777]

Sir, why 1.7M to 3.99M?

Net price of 1,000,001 to 3,999,999 will be subject to 20% only compared to the current taxation. So it will be cheaper, right?

But my question really is - how do we get the Net price? And the current taxation. Sorry for the ignorance.

Correction, Cars ₱1.7M to ₱3.99M will actually be cheaper. Cars between ₱1.0M to 1.6M will be the ones to get affected.

Under the current scheme for example, cars between 1.1M -1.2M are taxed at 10.18% - 12.67%, under that scheme, they are automatically slapped a 20% tax.

[Verbl Kint]

Correction, Cars ₱1.7M to ₱3.99M will actually be cheaper. Cars between ₱1.0M to 1.6M will be the ones to get affected.

Under the current scheme for example, cars between 1.1M -1.2M are taxed at 10.18% - 12.67%, under that scheme, they are automatically slapped a 20% tax.

Current scheme is as follows:

Net Retail Price	Fixed Tax	Marginal Tax
Up to ₱600k	None	2%
₱600k to ₱1.1M	₱12k	20% in excess of ₱600k
₱1.1M to ₱2.1M	₱112k	40% in excess of ₱1.1M
Over ₱2.1M	₱512k	60% in excess of ₱2.1M

This means you are partly correct, as the corrected statement should read:

Cars priced ₱1.1M to ₱3.99M will end up being cheaper. Cars under ₱1.1M and over ₱4M will be adversely impacted.

An example here is the Ford Ranger 2.2 Wildtrak 4x2 MT, currently priced at ₱1.425M. With the new updated 2018 excise tax, it would end up at about ₱1.41M.

The differences on the SRP's between 2017 and 2018 would be more massive the closer you are to ₱3.99M (Mustang/Challenger/Camaro territory). If I were the product managers of these cars, I would do my best dagdag-bawas of features to prune the price to just under ₱4M.



EDIT: posting the 2018 excise tax hierarchies below for comparison:

Net Retail Price	Fixed Tax	Marginal Tax
>₱600k	-	4%
₱600k to ₱1M	-	10%
₱1M to ₱4M	-	20%
> ₱4M	-	50%

[predo]

Correction, Cars ₱1.7M to ₱3.99M will actually be cheaper. Cars between ₱1.0M to 1.6M will be the ones to get affected.

Under the current scheme for example, cars between 1.1M -1.2M are taxed at 10.18% - 12.67%, under that scheme, they are automatically slapped a 20% tax.

I checked DOF website and this is the current tax scheme.

Lets reverse calculate the Fortunerr 2.4 G AT (SRP 1,555,000) under current tax scheme:
1,555,000 (SRP A) - 112,000 = 1,443,000 (SRP B)
1,443,000 - 1,100,000 = 343,000 (taxable excess of 1.1M)
343,000 x 0.40 = 137,200 (40% tax of excess of 1.1M)

1,443,000 (SRP B) - 137,200 (yung 40% tax) = 1,305,800 (factory price)

Under excise tax:
1,305,800 (factory price) x 0.20 = 261,160 ( 20% tax in excess of 1.1M)

1,305,800 + 261,160 = 1,566,960 (New SRP under excise tax 2018)

Price difference is negligible. But don't quote me...

[papi smith]

I did my computation based on the tax table only, if net price is the basis, I also don't know how it is derived, which is why I think Verbl has a different computation, maybe he is already basing on net prices.

Sir, why 1.7M to 3.99M?

Net price of 1,000,001 to 3,999,999 will be subject to 20% only compared to the current taxation. So it will be cheaper, right?

But my question really is - how do we get the Net price? And the current taxation. Sorry for the ignorance.

[EQAddict]

Bye bye dream car .......... arrrgh.

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[dr. d]

Bye bye dream car .......... arrrgh.

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kayo pah!!
heh heh.

[Calistro]

Bye bye dream car .......... arrrgh.

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Its going to be a hard sell convincing people you can't buy that dream car of yours sir

[dr. d]

Its going to be a hard sell convincing people you can't buy that dream car of yours sir

apparently, hindi lang ako ang Quripot dito.
heh heh.

[Vodka]

Senate, Congress Agree on New Vehicle Excise Tax That's Friendly to Pick-Up Trucks, EVs | Philippine Car News, Car Reviews & Prices - ************

exempt daw EV and pickup trucks. afaik thailand has low excise tax on pickup trucks

[dos2]

To summarize, here is the net effect based on the NET RETAIL PRICE (before taxes price not the SRP that we know of) up to the nearest thousand
below 600 EXPENSIVE
above 600 to 1M EXPENSIVE
above 1M to 1.079 EXPENSIVE
1.080M SAME
above 1.080 to 1.1M CHEAPER
above 1.1M to 1.63M EXPENSIVE
1.64M SAME
above 1.65M to 4M CHEAPER
above 4M EXPENSIVE

[dct]

Senate, Congress Agree on New Vehicle Excise Tax That's Friendly to Pick-Up Trucks, EVs | Philippine Car News, Car Reviews & Prices - ************

exempt daw EV and pickup trucks. afaik thailand has low excise tax on pickup trucks

Di naman ginagamit ang pick up dito satin pang business. Mananakawan lang ng paninda

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