Vehicle Excise Tax News

**kevinp** · August 5th, 2003 12:21 PM

I think its just right that they plugged the 10-cheater tax exemption loophole. Tignan nyo nga yung CR-V. makakasakay ba ng 10 people yun!? The sad thing is, it takes something as bad and obvious as the CR-V passing off as a 10-seater for the people in government to notice. Even before it was launched, Honda was already making waves about its new CR-V that's gonna be cheaper than the old one because it seats 10 people. IMO, the gov't should've done something about it even before it came out (i.e. initial measurement). Siguro fault din ng gumawa ng unang Revenue Regulation (RR 2-1997 yata) because di well defined what a "seat" is.

I read RR 4-2003 and IMO it makes sense. I'm glad that the government is finally (albeit late) doing something about the 10-seater rule. I think this new tax scheme will bring maturity to the automotive industry. Stricto (maybe too strict) na yung definition ng "seat"

For a seat to be accepted as a "seat" it has to pass the following:
1. Access to the seats must be through a side-door and not the rear of the vehicle (sapul ang mga AUV)
2. When a passenger is occupying the seat, the backrest must at least be shoulder level (isa pang contra-AUV)
3. The seat must have enough headroom for a passenger and must not be obstructed by air-con vents, lights, etc.
4. The floor of the seat must be flat (ino transmission tunnel?) and must enable the passenger to place his/her feet on the floor in a natural position.
5. i forgot, meron pang iba.

If the "seat" does not pass any one of the above, it is not a seat. Meron din specific measurements ang seats (dimensions) and a half-seat is not considered a seat. As a result, vehicles with 9 seats and a half-seat or 9 seats and 2 half-seats will not be exempted from excise tax.

**kevinp** · August 5th, 2003 12:27 PM

Senate also passed the new Value-based taxation law yesterday. Taxes are no longer based on displacement, no of doors, and/or no of seats. This in effect makes the issues discussed in the article in the first post of this thread obsolete.

Retail price of up to 600k: 2% tax
600k-1M: P12,000 + 20% of Value beyond 600k
1M - 2M. P92,000 + 100% of Value beyond 1M
greater than 2M: P1.09M + 150% of value beyond 2M

Tataas nga ang pirces pero it still makes sense to me. I think this will promote mga bare-to-the bones models ng mga AUV and cars para below 600k yung price.

I think the main problem here would be how often they move the price brackets in relation to inflation. Mejo mababa nga ang 600k na initial bracket. sana 2% tax on all vehicles below 1M na lang. Mahal na nga ngayon kahit mid-size sedans e.

**green** · August 5th, 2003 02:38 PM

AFAIK, hindi yata retail price yung basis ng new taxation scheme. I think it will be based on wholesale price . I was talking to someone in Toyota about this and they said na mumura yung Altis ng about 150k after this new law. Kaya on hold muna yung car shopping ko...

**Kennon_road** · August 5th, 2003 02:59 PM

Pag na implement yan di talaga ako bibili!!!, ok lang sana kung
may mapupuntahan yung tax, gaya ng maayos na traffic, kalsada,
para lang maimprove yung transportation system sa Pinas eh ang kaso ginagawa lang to para may cource of revenue ang hinayupak na gobyerno para mapagtakpan yung corruption nila #%$%^& .. puso ko...:mad:

**pajerokid** · August 5th, 2003 03:00 PM

I really find it stupid that such a big not to mention un-environmentally frienly SUV like the suburban will be exempted. What? were all gonna drive buses now?

**Kennon_road** · August 5th, 2003 03:09 PM

Originally posted by Kennon_road
Pag na implement yan di talaga ako bibili!!!, ok lang sana kung
may mapupuntahan yung tax, gaya ng maayos na traffic, kalsada,
para lang maimprove yung transportation system sa Pinas eh ang kaso ginagawa lang to para may cource of revenue ang hinayupak na gobyerno para mapagtakpan yung corruption nila #%$%^& .. puso ko...:mad:

source of revenue pala...

**BlackMagic** · August 5th, 2003 03:10 PM

PK, i think gusto makatipid ng mga officials kasi sila lang bibili ng SUburban.

**kevinp** · August 5th, 2003 03:26 PM

PK, dun sa bill na pinass ng senate, walang auto na exempted sa tax. kahit 20 pa ang seating capacity, may tax parin.

Green, talagang mumura ang mga passenger cars ngayon kasi di naman exempted sa tax yan. the current tax scheme is 10% Vat + 35% tax for 1600-2000cc cars, 50% for 2000cc-2700cc and 100% for cars with greater than 2700cc displacement.

That means yung sticker price ng altis ngayon na around 940k is retail price of 648k + 65k VAT + 227k Excise tax.

With the new scheme by the senate, sticker price ng Altis would be 648k + 65k VAT + 12k + 20% of 48,000 (Value of car above 600k) = P734,600 for the Altis 1.8

Sample computation lang po ito.

Sample kung Revo VX2200 naman assuming a current price of 850k (no excise tax). The 850 includes a 10% VAT so the actual price of the unit would be something like 773k.

The new price would be 773k + 77k VAT + (12k + (20% of 173k)) = 896,600.

Di gaano kalaki ang itataas ng price kung below 1M yung price ng sasakyan.

**kevinp** · August 5th, 2003 03:32 PM

Kung expedition kaya:

Assuming 1950k yung current sticker price (including 10% VAT and 0% Excise Tax).

Breakdown is 1773k + 177k VAT

New price would be 1773k + 177k + (92k + 100% of 773k) = 2815k for an Expedition!

**HBOY** · August 5th, 2003 03:37 PM

Originally posted by kevinp
PK, dun sa bill na pinass ng senate, walang auto na exempted sa tax. kahit 20 pa ang seating capacity, may tax parin.

Green, talagang mumura ang mga passenger cars ngayon kasi di naman exempted sa tax yan. the current tax scheme is 10% Vat + 35% tax for 1600-2000cc cars, 50% for 2000cc-2700cc and 100% for cars with greater than 2700cc displacement.

That means yung sticker price ng altis ngayon na around 940k is retail price of 648k + 65k VAT + 227k Excise tax.

With the new scheme by the senate, sticker price ng Altis would be 648k + 65k VAT + 12k + 20% of 48,000 (Value of car above 600k) = P734,600 for the Altis 1.8

Sample computation lang po ito.

Sample kung Revo VX2200 naman assuming a current price of 850k (no excise tax). The 850 includes a 10% VAT so the actual price of the unit would be something like 773k.

The new price would be 773k + 77k VAT + (12k + (20% of 173k)) = 896,600.

Di gaano kalaki ang itataas ng price kung below 1M yung price ng sasakyan.

sir kevin... walng differentiation kung gasser or diesel??.. lugi naman ata mga dieselers... eh usually.. you get high displacements for diesel.. and yet they are not necessarily pegged as luxury vehicles.... the taxation should be based probably on classification or gross weight....i think....