The death of the car industry

[StockEngine]

I dont think the car industry will die because of this proposed tax. 2017 sales target is over 500,000 units if my guess is right.

[ice15]

Government should tax cars that are 2.5M and above...

1.1M is just too low, it will affect small business owners who need Fortuners/Monteros/Innovas

[StockEngine]

Duterte tax reform benefits outweigh price spikes: finance dept - YouTube

[minicarph]

O.A. mode
the earliest implementation of excise tax will be 2018, if it gets implemented. mahina benta ngaun january kaya ganyan nagpapanic mode, pati malls hina


BusinessWorld | Government wants car tax hike in 218

[uls]

[QUOTE=minicarph;2799657]O.A. mode
the earliest implementation of excise tax will be 2018, if it gets implemented. mahina benta ngaun january kaya ganyan nagpapanic mode, pati malls hina


yes mahina pasok ng 2017

pansin ko konti lang inquiries

looks like peso depreciation is having an effect already

businesses are facing higher cost and there will be higher operating cost going forward

kung may business ka you're already getting squeezed with higher import prices tapos you're gonna have to pay higher SSS contribution, higher taxes etc

di mo naman pwede ipasa lahat sa customer mo baka hindi na sila bumili

that's gonna make you think twice kung mag expand ka pa

lagi ko naman nababasa sa new the Phil. economy will keep growing... faster than China daw

ok sige... meron tayo young and growing population so guaranteed yan madami consumer and the Phil. economy is a consumption driven

pero... kung itatax to death mo ang mga business at tao (oo alam ko ibababa ang income tax pero babawiin naman sa ibang sector ng economy so net net baka mas mataas pa ang taxes) paano lalago ang economy?

[uls]

[QUOTE=uls;2799778]

O.A. mode
the earliest implementation of excise tax will be 2018, if it gets implemented. mahina benta ngaun january kaya ganyan nagpapanic mode, pati malls hina


yes mahina pasok ng 2017

pansin ko konti lang inquiries

looks like peso depreciation is having an effect already

businesses are facing higher cost and there will be higher operating cost going forward

kung may business ka you're already getting squeezed with higher import prices tapos you're gonna have to pay higher SSS contribution, higher taxes etc

di mo naman pwede ipasa lahat sa customer mo baka hindi na sila bumili

that's gonna make you think twice kung mag expand ka pa

lagi ko naman nababasa sa news the Phil. economy will keep growing... faster than China daw

ok sige... meron tayo young and growing population so guaranteed yan madami consumer and the Phil. economy is consumption driven

pero... kung itatax to death mo ang mga business at tao (oo alam ko ibababa ang income tax pero babawiin naman sa ibang sector ng economy so net net baka mas mataas pa ang taxes) paano lalago ang economy?

[uls]

OB/minicaph, minsan (or madalas) may sense ang mga insight/observation mo

ano sa tingin mo baket mahina pasok ng 2017?

sa naririnig ko/observation may epekto na ang pag hina ng piso

may naririnig din ako sa mga customer na hindi pa daw sila nakaka collection kaya wala pa sila pondo for purchases

[_Cathy_]

Fast food is only P100 like the KFC or Jollibee 1 pc chicken. But most employees in our office bring baon or there is a lady that brings lunch daily. I think it's P60 per meal, home cooked pa

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[StockEngine]

Fast food is only P100 like the KFC or Jollibee 1 pc chicken. But most employees in our office bring baon or there is a lady that brings lunch daily. I think it's P60 per meal, home cooked pa

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I also prefer home cooked. I get to limit my calories to the dot. Havent eaten outside the past weeks except that one mcdo meal. 250/daily is way too much for 10k-20k earners.

[StockEngine]

From Deakins FB


Dear government, I just wanted to drop you a little note to say that the excise tax proposal on cars is stupid. It's anti progress. It will cripple an industry that took 20 years to recover; an industry that invested billions of dollars (after you courted them with incentives) into the economy and now employs tens, if not hundreds, of thousands of Filipinos.

This is not how you reward an industry that managed to hit the targets you set for them.

If you're doing this to reduce traffic, that's not going to work either. Besides which, why should those in the provinces have to pay 40% more for their cars simply because we can't get our act together in Metro Manila, Cebu, and a handful of other cities? It's like ordering chemotherapy to treat a couple of pimples on your face. If you really want to have an impact on traffic and raise revenue at the same time, why not tax the drivers licenses? We have way too many idiots on the road anyway. And then plough some of that back into driver education and stricter testing. Then look at congestion charges in key cities.

If you're doing this for the environment, why not pass the alternative fuel incentive act that doesn't tax EVs, hybrids and other Zero or low emission vehicles? And then tax the crap out of polluters. Or outlaw them altogether like you promised you would. Don't paint us all with that same dirty brush.

If you're doing this because you think you're hitting the rich, keep in mind that many car owners only became car owners as a way to escape the failure of government to provide them a safe and reliable, government-funded, public transportation alternative.

[EQAddict]

This is moronic. On so many levels.

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[jut703]

This is moronic. On so many levels.

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May I ask why?

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[minicarph]

May I ask why?

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coz only a moron would believe this will get implemented. the release of this issue is as timely as jumpstarting the 2017 sales of cars. if people see the computation, uunahin na nila lahat bumile ng car lol, those who buy now coz of this = moron

[EQAddict]

May I ask why?

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Why shackle an industry that took so long to recover and is now pumping billions into the economy (and tax coffers)?

They should be more efficient in their tax collection especially in customs.

And personally, i worked my ass off to get into the upper tier tax bracket. Now they will increase my income tax from 32% to 35%. FINE. OKAY. I will help subsidize the others. I can stomach that even if its painful. But now that i can afford these nice cars they will also put it beyond reach once again. So yeah im pissed off. Its a double whammy for me personally.

Regardless they should fix their tax collection EFFICIENCY rather than just increasing taxes on petroleum products and cars. Why punish law abiding citizens? And the answer to that question is they are too corrupt to fix their milking cows so they go the lazy route and tax those that have no other option but to pay up.







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[jut703]

Why shackle an industry that took so long to recover and is now pumping billions into the economy (and tax coffers)?

They should be more efficient in their tax collection especially in customs.






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That's true, and I share the same sentiment - all business owners I know are able to play with their books so they never really pay as much taxes as employees like me.

But the reality is that I don't think they can do anything about it. Kim Henares tried and failed, while the current administration doesn't seem to be taking as strong a stance.

As a tax-generation initiative, I think the vehicle taxation scheme makes sense. Between uniform excise taxes on fuel and progressive taxation of cars, I think the latter is more equitable. However, there are many other equally effective tax-generation schemes.

Ultimately, I doubt that this will be implemented at all (this is something that I agree with our resident troll).

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[Wh1stl3r2]

Why shackle an industry that took so long to recover and is now pumping billions into the economy (and tax coffers)?

They should be more efficient in their tax collection especially in customs.
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I agree. As my doppelganger JD said, why penalize the whole country for the problems of a few urban areas? In the provinces, many small businessmen, who are providers of employment are dependent on private vehicles to go about their work. When I was based there I normally covered 100+Km/day on roads that are far from kei car friendly. The additional tax on new cars and fuel will only add to their cost of business and slow down growth where it is needed most. Then there's their staff who commute or use a motorcycle.

And a lot of companies have already put up dealerships and other related businesses in the provinces. What will become of their investment if sales slow down? Lay offs and a even a contraction in tax revenue (specially at bro Eq's segment) are possible.

I'm not against new or additional taxes. In fact I support the measure to reduce income tax for the lower brackets. My point is, why implement so high an increase? I just get the feeling what this is really about is funding his exorbitant promises to the PNP and AFP's salaries. And keeping his "intelligence fund".

[minicarph]

what is a characteristic of a scam? eto na yun, kumpleto pa computation as in prepared na prepared with graphical and colorful tables

for me, the one who prepared this report is the one who should be investigated on why it's being spread now eh 2018 pa yan subject to voting by the legislature and some hearings pa. tsk tsk tsk.

if you ask me, this is an effort para hindi mag-discount ang mga car companies this year kasi alam nila kelangan na mag-discount coz wala na mailabas pa bagong car this year, unless yun Nissan na PPV.

[jut703]

I agree. As my doppelganger JD said, why penalize the whole country for the problems of a few urban areas? In the provinces, many small businessmen, who are providers of employment are dependent on private vehicles to go about their work. When I was based there I normally covered 100+Km/day on roads that are far from kei car friendly. The additional tax on new cars and fuel will only add to their cost of business and slow down growth where it is needed most. Then there's their staff who commute or use a motorcycle.

And a lot of companies have already put up dealerships and other related businesses in the provinces. What will become of their investment if sales slow down? Lay offs and a even a contraction in tax revenue (specially at bro Eq's segment) are possible.

I'm not against new or additional taxes. In fact I support the measure to reduce income tax for the lower brackets. My point is, why implement so high an increase? I just get the feeling what this is really about is funding his exorbitant promises to the PNP and AFP's salaries. And keeping his "intelligence fund".

The impact on average cars isn't all that huge. 60k extra for an Innova? People spend much more on useless upgrades.

The additional taxation is to offset the proposed P150 billion annual reduction in tax collections because of the revised tax rates. Angara's version is a bit less aggressive with lower tax cuts resulting to only P60 billion.

Actually, even if you implement the taxation on vehicles, the incremental tax revenue isn't enough to offset the lower collections from the lower tax rates. With 400,000 cars sold and an average incremental 60k tax levied on them, you only generate 24B.

Remember, this administration plans to spend tremendously on infrastructure and they'll need tax revenue to implement that.

Again, I maintain my stand that going after businesses that don't pay proper taxes is still the best way to increase collections. In fact, the problem is so bad that my friend quips that he can't wait to be a businessman so he can avoid taxes.

However, if the tax reform pushes through, the government must find a way to offset the losses, which is why there are so many ideas being thrown about right now. Not all will be feasible, not all will make sense, but they have to implement something or else we'll suffer a dangerous budget deficit.

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[CVT]

Why shackle an industry that took so long to recover and is now pumping billions into the economy (and tax coffers)?

They should be more efficient in their tax collection especially in customs.

And personally, i worked my ass off to get into the upper tier tax bracket. Now they will increase my income tax from 32% to 35%. FINE. OKAY. I will help subsidize the others. I can stomach that even if its painful. But now that i can afford these nice cars they will also put it beyond reach once again. So yeah im pissed off. Its a double whammy for me personally.

Regardless they should fix their tax collection EFFICIENCY rather than just increasing taxes on petroleum products and cars. Why punish law abiding citizens? And the answer to that question is they are too corrupt to fix their milking cows so they go the lazy route and tax those that have no other option but to pay up.







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Bro.,- I ran some numbers on the personal income tax.

The inflection point on the annual taxable income is about P8.84M, assuming personal deductions are the same.

At this amount, both the current personal income tax scheme and the proposed (personal income tax) scheme will result to about P2.794M tax.

After which the proposed scheme will add just 3% on the tax vs. the current scheme. This means that at P9.94M taxable income[which is P1M above the inflection point],- you pay only P30K more vs. if you were paying on the current scheme.

At P11.84M taxable income [P3M above the inflection point],- you pay only P90K more than the current scheme. And not so many people (in terms of %) have this level of taxable income

So, IMO, the target of the current scheme really is to give more spending power to the general public.

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"The measure of a man is what he does with power" LJIOHF!

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[CVT]

I could not edit my previous post and so I am adding this:

Again, IMO, the aim of the new income tax scheme is giving more spending power to the general public vs. taxing the "ultra-rich".

What is P90K in additional tax to a taxable income of P3M for these few people?

However, I do agree,- they have to be efficient and with teeth in tax collection.

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"The measure of a man is what he does with power" LJIOHF!

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