Vehicle Excise Tax News

[kiper]

dapat ang gumagawa ng 10-seater law na yan eh ung mga mismong galing sa automotive industry..alam nila kung ano ang tama at ano ang dapat gawen..sheez..!!

[mbt]

i don't understand all the ruckus about Honda's "unfair" strategy with the CR-V for the following reasons:

1) Honda attempted a radical move with the 10-seater CR-V, however, it was the government itself that approved it! if the committee that evaluated it in the first place were less negligent to begin with, then none of this would happen and no one would be crying foul

2) it is actually the consumer who wins with Honda's move. the price of the CR-V dropped from ~1.3M to 900+K, putting it within greater reach of the mainstream market. whatever you say about Honda's "greed", i don't think putting a vehicle with a great engine, great safety, and great engineering into the hands of more people qualifies as a devilish act.

3) the move of Honda was indeed a shrewd one, however, Honda should not be blamed, because it only proves that there is indeed a great problem with existing tax laws. it's not too hard to see that it's not the CR-V at fault, but the law itself that encourages such creative interpretations!

4) the goverment's accusations of losing billions in foregone tax revenues is absolutely hogwash. if the CR-V were still sold at 1.3M as before, then so few units would be sold as a result, and ultimately, the low volume would make total tax collections much smaller.

as for this new tax law, well, i wonder what the extreme discrimination towards SUVs and 4x4s is all about. in a country (or at least capital) where the inefficient government utterly fails to provide adequate flood control and decent roads, it is easy to see why high-riding SUVs and trucks can be a necessity. it's all about choice: the consumer should be able to choose a vehicle that suits his needs (or wants, within reason).

about luxury (the government's basis for taxing the hell out of trucks), how in the world can an SUV be more luxurious than a sedan just by virtue of being an SUV or truck? if the jeep wrangler were available here, it would be slapped with an exorbitant luxury tax (read: excise tax)... who would agree that a Nissan Exalta is more luxurious than a Wrangler? if a Nissan Patrol variant were available locally as it is equipped in other markets, with manual window operation, manual transmission, no wood trim, black bumpers, cloth seats, etc etc... it would still be considered a luxury vehicle when it is in fact, a very basic vehicle more suited to the rural boondocks than to the city elite!! the military uses humvees and (i suppose) defenders and similar vehicles... abolish the armed forces for indulging in such LUXURIES!

the new tax laws lowers the price of sedans, which is good, but at the cost of the ENTIRE SUV and truck market. what will you do with a sedan when there is a two-feet deep puddle every two blocks? better stay home and miss school, work (or better stay in school or at work and forget about going home). what will you do with a car that shakes itself loose after a few years of trundling down beaten city streets? what if you don't like the fuel costs of a gasoline-powered sedan?

wouldn't a diesel-fed truck be a much more practical choice in these conditions? obviously, but sorry, the Filipino is out of luck.

[OTEP]

mbt,

Amen to that! Now take your heart medications. hehehe.

[pissword]

hahaha galing naman mbt.... haayyyy

san nanggaling ung 938T na BMW 316??? 1.7M + Un dapat ahh yun nga un q ko ehhh meron kasing nilabas ang BMW na 250T downpayment tapos 31T/month 48Months wala interest... anu sa tingin nyo?? ndi pa to nasama dyan noh??kasi d pa tumaas eh tas kaya pa nila mag bigay ng ala interest o

[artpogi]

Originally posted by wowiesy
either way.. the BIR will get its way since regardless if pres GMA signs a new law or not, the current IRR of the BIR would take effect starting sept 8... kung baga, lesser evil na lang ang version ng congress... compared to what the BIR would want na talagang grabe...

Question lang

If GMA signs the Congress version of the Vehicle Excise Tax Law, di ba mapapa-walang bisa na yung BIR version ng Vehicle Excise Tax?

Parang mas okay yung Congress version eh.

Oh, Boss MBT

Well Said!

[kevinp]

artpogi, tama yan. taas talaga ng presyo ng mga sasakyan kung BIR tax law yung maiimplement. pag naayos kaagad yung congress/senate version, we'll end up with cheaper sedans and more expensive AUVs.

MBT, malaki lang naman ang magiging tax ng mga SUV's (under the BIR tax scheme) kung malaki ang engine displacement. if you had a patrol wil a 2.0L diesel engine, 15% excise tax lang ang babayaran. Kaya nga the senate/congress decided to shift the basis for taxation from engine displacement to the actual value of the vehicle. If, as you mentioned, Nissan were to introduce a Patrol (like the ones found in Australia) na bare model, black bumpers, no fog lamps, tingga mags, manual windows, no a/c, no stereo, etc. I'm sure its selling price would be less than a million pesos and it would be taxed a relatively small amount compared to the Patrol that Nissan is selling today.

IMO, the auto manufacturers should go back to the basics to lower the selling costs of their vehicles and offer 'packages' to the customer (i.e. performance package, luxury package, etc.). I think that this will be the next loophole that the auto manufacturers will exploit unless there is a bigger tax (bigger than the excise tax on a new automobile) on auto accessories that we do not know of.

[kevinp]

dagdag ko lang:

The government makes laws for the people to follow the laws, not for people to find loopholes and exploit them. True, the 10-seater rule was open to "creative" interpretations and mejo bobo rin ang BIR to make the manufacturer's brochure the basis of an automobile's seating capacity. But if Honda Philippines had any sense of social responsibility they shouldn't have claimed that the CR-V can seat 10 people. IMO, the 10 seater law was put in place because the Gov't wanted to promote vehicles with more carrying capacity.

Lagi ko nakikita yung mga tsikot people complaining about the corruption in the Government and that politicians are selfish bastards, but isn't what Honda did just another form of corruption? You applaud Honda for making the CR-V more affordable for the consumers, but by not paying excise tax on the purchase of the CR-V, isn't the consumer also robbing the government of its own revenues?

If we, the people, turn a blind eye or even encourage such moves as the one made by Honda on the CR-V, how can we expect the Government to change? We often demand righteousness from our politicians, but if the private sector and the consumers are not righteous as well, wala talagang mangyayari.

Obviously the culture of the people in government is not gonna change in the near future so I say it is up to us, the consumers/the private sector to initiate the change so that others wil follow suit.

[mazdamazda]

Originally posted by mbt
i don't understand all the ruckus about Honda's "unfair" strategy with the CR-V for the following reasons:

how come...

toyota rav4 sv sells for only 990K
ford escape xls sells for only 1.15M
suzuki vitara (4x4!) sells for only 1.13M

that's just a tad above the retail price of the honda and yet they do not enjoy the benefits of the 10 seater tax exemption before. this just means that honda (and all AUV manufacturers) is putting a large mark-up on their vehicles.

[Suzuki-san]

Originally posted by mazdamazda
how come...

toyota rav4 sv sells for only 990K
ford escape xls sells for only 1.15M
suzuki vitara (4x4!) sells for only 1.13M

that's just a tad above the retail price of the honda and yet they do not enjoy the benefits of the 10 seater tax exemption before. this just means that honda (and all AUV manufacturers) is putting a large mark-up on their vehicles.

Is this in line with the term "Value Engineering"?

[mazdamazda]

Originally posted by Suzuki-san
Is this in line with the term "Value Engineering"?

just take a look at the interior of the rav4 vs the crv and i'll let you decide on value engineering...

RAV4:




CRV: