Excise Tax? When June 2017 or 2018?

[Wh1stl3r]

Toyota Fortuner 2.4 V Diesel 4x2 AT
- Current SRP: ₱ 1,833,000
- e-Vat set at 12%
- Computed using 15% profit margin
- Old Excise Tax bracket: ₱1.1M to ₱2.1M; Fixed Tax: ₱112,000; Marginal Tax 40% of value in excess of ₱1.1M
- 2018 Excise Tax bracket: ₱1M to ₱4M; Fixed Tax: None; Marginal Tax 20%

• 2017 SRP: ₱ 1,833,000
• 2018 SRP: ₱ 1,933,254.86
• Price difference: ₱ 100,254.86

Disclaimer:
Please do not take the above seriously as we haven't had confirmation from a tax/accounting expert that the math above is correct. The profit margin of 15% is also a wild guess at this point.

I got the same figure if distributor + dealer markup is at 15%

[kruser]

What about for Toyota Hilux 4x2 G AT?
Current SRP: 1,355,000

If this is not included in the bill that there will be no tax on pickup trucks

[ale828]

What about for Toyota Hilux 4x2 G AT?
Current SRP: 1,355,000

If this is not included in the bill that there will be no tax on pickup trucks

i have been reading from news reports that the pick-ups will have the same tax structure as before. So No increase or No decrease. Hindi siya exempted from the excise tax. exempted siya from the new added tax. Don't quote me on this.
What i have read is that full EV are the one's that will have a full excemption and that hybrids will have partial.
We just have to wait till the major car guru's/website do the math and finally clear all the mess of the new tax system.

[Tydurden777]

Sir, pa-compute naman Montero GLS AT and GLS AT premium. Thank you.

I am very confuse, should we purchase now or wait for next month. Urrghhh!

Sirs, should we also consider if there will be price increase? Maybe the will just adjust the Manufacturer’s price para walang decrease or maybe more pa sa profit nila.

[predo]

projected SRP fluctuation is here. drum roll.....

Buy or Do Not Buy: The Possible Effect of the New Vehicle Excise Tax on 42 Vehicles | Philippine Car News, Car Reviews & Prices - ************

[numbah5]

Final computation by ************. Note that the pickup trucks and electric vehicles are exempted from the excise tax while hybrid vehicles will get be slapped half of the new excise tax rates starting next year (target implementation once President Duterte signs the ratified Bicam version of the TRAIN Bill into law by Monday the latest is January 1, 2018)





Source: Buy or Do Not Buy: The Possible Effect of the New Vehicle Excise Tax on 42 Vehicles | Philippine Car News, Car Reviews & Prices - ************

Update: Senate and House of Representatives has ratified the Bicam version of the TRAIN Bill, removing only the coal tax.

Source: Congress ratifies tax reform bill sans coal excise tax hike | ABS-CBN News

[Verbl Kint]

Final computation by ************. Note that the pickup trucks and electric vehicles are exempted from the excise tax while hybrid vehicles will get be slapped half of the new excise tax rates starting next year (target implementation once President Duterte signs the ratified Bicam version of the TRAIN Bill into law by Monday the latest is January 1, 2018)

The combined 14% dealer and wholesale (distributor) profit will likely be accurate for the most popular cars out there and the cheaper subcompacts. However, for the likes of the Nissan GT-R, Audi R8, Volvo XC90, Lexus, and some of the top of the line variants, 14% is just too low. The sportscars and luxury cars probably have upwards of 40% and up in terms of shared profit margin between the dealer and distributor.

Other low-volume but marquee offerings (Toyota 86, Mazda MX-5, Land Cruiser V8, even the Prius) will likely also have a higher profit margin than the assumed 14%.

I would agree with the graph, though, that the break-even points (in terms of increase vs decrease) will probably be near the ₱2.5M and ₱7.3M points, but this will depend on the profit margins used (14% is probably too low for cars of this price).

[kagalingan]

paganda ng paganda technology mas wala or less dapat tax....

for me ganito dapat

electric - excempted

hybrid - medyo tax konti

gas - tax pero should not be higher sa diesel....

diesel - should be heavily tax.... sakit sa ulo usok tapos tunog lata pa montero / fortuner..... ngarag pa katawan ng mga nakasakay....

kung sino mas nakakasira sa environment and kalusugan yun dapat paparusahan......

sa noise pollution pa lang talong-talo na diesel..fortuner, montero, crosswind...etc (nakakaistorbo sa natutulog...grabe abot sa 3rd floor ingay makina pweh..... )

[Yuesford]

In the end. Yung segment pa rin ng mga politiko ang magbebenfit dito.

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[numbah5]

The combined 14% dealer and wholesale (distributor) profit will likely be accurate for the most popular cars out there and the cheaper subcompacts. However, for the likes of the Nissan GT-R, Audi R8, Volvo XC90, Lexus, and some of the top of the line variants, 14% is just too low. The sportscars and luxury cars probably have upwards of 40% and up in terms of shared profit margin between the dealer and distributor.

Other low-volume but marquee offerings (Toyota 86, Mazda MX-5, Land Cruiser V8, even the Prius) will likely also have a higher profit margin than the assumed 14%.

I would agree with the graph, though, that the break-even points (in terms of increase vs decrease) will probably be near the ₱2.5M and ₱7.3M points, but this will depend on the profit margins used (14% is probably too low for cars of this price).

The global standard of the profit margins of carmakers only has 15% as the highest rate. This is as per an executive of one of the luxury car brands here. I asked him about the profit margin rates. Here in the Philippines according to him, the highest profit margin rate is 15%

[Verbl Kint]

The global standard of the profit margins of carmakers only has 15% as the highest rate. This is as per an executive of one of the luxury car brands here. I asked him about the profit margin rates. Here in the Philippines according to him, the highest profit margin rate is 15%

If you mean a profit margin of 15% on the SRP (for most cars) I would agree with you. In fact, autoindustriya and top gear ph use the same amount. However, for the purposes of getting the net manufacturer's price, the pre-VAT profit margin used by both is 20%.

Both sites also mentioned (published, actually) the percentage as a minimum rather than a max. Please check citations below:


https://www.topgear.com.ph/news/indu...-20170206-lfrm

"Profits in the automotive industry hover around 20% before e-VAT, or around 15% of the total price, with 10% typically going to the distributor and just 5% going to the dealer."

"It’s also important to note that profit margins can be higher than the assumed 20%. Top-of-the-line variants loaded with toys enjoy bigger margins than stripped-down models, while in-demand exotics can even command margins as high as 50%!"



https://www.autoindustriya.com/featu...of-excise.html

"Dealer margins or profit margins are, much like NMISPs, closely guarded secrets of the car companies. Our confidential contacts within the auto industry tell us that a conservative profit margin is 20%, though it could be higher. For the sake of our calculations, we applied the 20% margin across the board to come up with hypothetical MSRPs to illustrate how much prices would increase for the consumer."

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[numbah5]

If you mean a profit margin of 15% on the SRP (for most cars) I would agree with you. In fact, autoindustriya and top gear ph use the same amount. However, for the purposes of getting the net manufacturer's price, the pre-VAT profit margin used by both is 20%.

Both sites also mentioned (published, actually) the percentage as a minimum rather than a max. Please check citations below:


https://www.topgear.com.ph/news/indu...-20170206-lfrm

"Profits in the automotive industry hover around 20% before e-VAT, or around 15% of the total price, with 10% typically going to the distributor and just 5% going to the dealer."

"It’s also important to note that profit margins can be higher than the assumed 20%. Top-of-the-line variants loaded with toys enjoy bigger margins than stripped-down models, while in-demand exotics can even command margins as high as 50%!"



https://www.autoindustriya.com/featu...of-excise.html

"Dealer margins or profit margins are, much like NMISPs, closely guarded secrets of the car companies. Our confidential contacts within the auto industry tell us that a conservative profit margin is 20%, though it could be higher. For the sake of our calculations, we applied the 20% margin across the board to come up with hypothetical MSRPs to illustrate how much prices would increase for the consumer."

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Kaya nga I had to ask the executive about the profit margin rates di ba? I had to ask him so I’ll know how they earn through their profit margins, especially because of the impending new excise tax rates. The executive knows because he’s one of the people running the luxury car brand distributor and he knows what he told me.

[dr. d]

i was informed, some years ago, that casas make significantly more money from maintenance and repair services, than from selling cars.

[StockEngine]

i was informed, some years ago, that casas make significantly more money from maintenance and repair services, than from selling cars.

mega millions daily for the usual 5000km interval... toyota pasig has about 20 Car bays? if they can service 500 wallets in a 12hr shift, and use that 25000km(that cost 24k) example by one poster.

imagine the 8figure cash flow....

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[regjesmom]

i was informed, some years ago, that casas make significantly more money from maintenance and repair services, than from selling cars.

this is correct.

[StockEngine]

and it doesn't look too bad...

need to see this mb x series locally :D

Buy or Do Not Buy: The Possible Effect of the New Vehicle Excise Tax on 42 Vehicles | Philippine Car News, Car Reviews & Prices - ************

[predo]

Due to long wait times for some vehicles, if I purchased now and delivered next year, am I protected with the excise tax?

[pobre24]

Due to long wait times for some vehicles, if I purchased now and delivered next year, am I protected with the excise tax?

Unfortunately, you won't be able to purchase without the physical vehicle. Purchase documentation requires some vehicle details/numbers. Means no documentation can be facilitated to lock in the price. I actually tried doing this before. hehe

[falken]

i was informed, some years ago, that casas make significantly more money from maintenance and repair services, than from selling cars.

It is correct, and that's why certain casas shorten the time in between PMS.

[supadude]

I think mga mechanic nila that do change oil are interns or baguhan palang kasi i usually see na may supervisor nag tuturo sa mga eto kung ano gagawin parang teacher lang sa class. un mga students may kanya kanyang materials (which is cars) tapos yun teacher iikot to supervise what the students are doing. kaya nga hinde porket casa pinagawa yun car sigurado na quality yun gawa, minsan mas maganda pa sa trusted mechanics sa labas.

not sure if that is still the case now.