Excise Tax? When June 2017 or 2018?

[fleas2016]

Background on this pic: for the past 6 months these dealers and gray market sellers have been gouging customers for the LC200. Examples:

1) dealers will only take in house financing and full inhouse insurance. Absolutely no Cash (i was lucky with the Lc200 i bought my dad....reserved early and was able to pay in cash)

2) gray market resellers would sell dubai versions for 700-800k+++ mark up but technically the dubai versions arent as loaded as the local premium versions.

3) hedgers would buy units from dealers in bulk (5 at a time) via in house financing and then flip them for a 500k profit each.


And now....today... literally....after this bill is announced.....we have this:






Hehehehehehehe.

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Sabi dati out of stock [emoji53]

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[cirdeolavar]

I've read in the paper that the Senate has a different version of proposal for the excise tax: below 1M manufacturing cost would be 10%, and above 1M is 20%. Senate version would be more easier to compute as compared to the 5 tier ET of the House version. Might come out something like this:

E.G.

Manufacturing cost: 500k
Senate version ET: 50k
House version ET: 20k

Manufacturing cost: 800k
Senate version: 80k
House version: 94k

Manufacturing cost: 1.2M
Senate version: 240k
House version: 254k

Manufacturing cost: 2.5M
Senate version: 500k
House version: 1.109M

House or Senate version? Depends on what type of car are you planning to get.

[predo]

even the Fortuners..last week only the various SA's I've inquired was telling me February pa daw kung cash. Then just yesterday, one SA told me if I can forward the P.O. on Friday, they can release the unit on Monday. What gives???

[boytsiks]

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.

Good morning Boss,

Pacompute nga rin, we are planning to get a City VX SRP = 920k

Malaki kaya ang difference.

Thanks


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[wd420]

Mas mura ang mga over 1m na car? Next year?

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[Verbl Kint]

Good morning Boss,

Pacompute nga rin, we are planning to get a City VX SRP = 920k

Honda City 1.5 VX NAVI CVT
- Current SRP: ₱ 913,000
- e-Vat set at 12%
- Computed using 20% profit margin
- Old Excise Tax bracket: ₱600K to ₱1.1M; Fixed Tax: ₱ 12,000; Marginal Tax 20% of value in excess of ₱ 600k
- Net Retail Price (less e-VAT, profit margin, and excise tax): ₱ 656,096.23
- 2018 Excise Tax bracket: ₱600k to ₱1M; Fixed Tax: None; Marginal Tax 10%

• 2017 SRP: ₱ 913,000.00
• 2018 SRP: ₱ 969,972.67
• Price Difference: ₱ 56,972.67

Disclaimer:
Please do not take the above seriously as we haven't had confirmation from a tax/accounting expert that the arithmetic above is correct. The profit margin of 20% is also a wild guess at this point. The dealer might even choose to have a smaller profit margin next year since car sales are expected to slump. The usual annual dealer/distributor increase has also not been factored in. YMMV.

[makelovenotwar]

Is my equation correct for getting the factory price?

We are given the following:
1. SRP from dealers
2. Current taxation scheme (fixed tax, marginal tax)

We assume the following:
1. 20% (of factory price) dealer profit

equation:
SRP = factory_price + fixed_tax + mariginal_tax + dealer_profit

So for a car with SRP = 1,555,000
The computation for getting the factory price would be: (note FP = factory_price)

1,555,000 = FP + 112,000 + [0.4 x (FP - 1,100,000)] + (FP x 0.2)
1,555,000 = FP+ 112,000 + [0.4FP - 440000)] + (0.2FP)
1,555,000 = 1.6FP + 112,000 - 440000
1,555,000 = 1.6FP - 328,000
1,883,000 = 1.6FP
1,176,875 = FP

factory price is 1,176,875 pesos

[Verbl Kint]

Is my equation correct for getting the factory price?

We are given the following:
1. SRP from dealers
2. Current taxation scheme (fixed tax, marginal tax)

We assume the following:
1. 20% (of factory price) dealer profit

equation:
SRP = factory_price + fixed_tax + mariginal_tax + dealer_profit

So for a car with SRP = 1,555,000
The computation for getting the factory price would be: (note FP = factory_price)

1,555,000 = FP + 112,000 + [0.4 x (FP - 1,100,000)] + (FP x 0.2)
1,555,000 = FP+ 112,000 + [0.4FP - 440000)] + (0.2FP)
1,555,000 = 1.6FP + 112,000 - 440000
1,555,000 = 1.6FP - 328,000
1,883,000 = 1.6FP
1,176,875 = FP

factory price is 1,176,875 pesos

Don't forget e-VAT of 12%. ;)

[makelovenotwar]

Don't forget e-VAT of 12%. ;)

Noted on that. Thanks sir!

[Verbl Kint]

Let's try two cars that I've always liked.

For the Panamera, the dealer can choose to have a slightly lower profit margin in 2018 to keep the same SRP. OTOH, the GT-R, will be a lot cheaper in 2018, and can even go lower if the distributor chooses to lower margins.

Nissan GT-R 3.8 V6 AT "Gojira"
- Current SRP: ₱ 7,350,000
- e-Vat set at 12%
- Computed using 50% profit margin
- Old Excise Tax bracket: Over ₱2.1M; Fixed Tax: ₱ 512,000; Marginal Tax 60% of value in excess of ₱ 2.1M
- Net Retail Price (less e-VAT, profit margin, and excise tax): ₱ 3,201,875.00
- 2018 Excise Tax bracket: ₱1M to ₱4M; Fixed Tax: None; Marginal Tax 20%

• 2017 SRP: ₱ 7,350,000
• 2018 SRP: ₱ 6,454,980
• Price Difference: ₱ 895,020

Panamera Turbo Executive
- Current SRP: ₱ 17,700,000
- e-Vat set at 12%
- Computed using 50% profit margin
- Old Excise Tax bracket: Over ₱2.1M; Fixed Tax: ₱ 512,000; Marginal Tax 60% of value in excess of ₱ 600k
- Net Retail Price (less e-VAT, profit margin, and excise tax): ₱ 7,052,321.43
- 2018 Excise Tax bracket: Over ₱4M; Fixed Tax: None; Marginal Tax 50%

• 2017 SRP: ₱ 17,700,000
• 2018 SRP: ₱ 17,771,850.00
• Price Difference: ₱ 71,850.00

Disclaimer:
Please do not take the above seriously as we haven't had confirmation from a tax/accounting expert that the arithmetic above is correct. The profit margin of 50% is also a wild guess at this point. The dealer might even choose to have a smaller profit margin next year since car sales are expected to slump. The usual annual dealer/distributor increase has also not been factored in. YMMV.