The Philippines automotive industry has agreed to a three percent excise tax on Asian utility vehicles (AUVs,) pick-ups and passenger vans and a progressive excise tax rates of up to 35% for cars and sports utility vehicles based on the size of the engine to break the impasse on the taxation issue on automobiles, the Manila Bulletin Online website said.
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Industry players belonging to the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) voted 10 to 1 in favour of engine-based excise taxation and Ford Motor Co. Phils. Inc. was the only member that voted in favour of the value-based excise tax system, the website said.
The industry position has been submitted to the Board of Investments (BOI), which spearheads the review of the excise tax system on automobiles together with the Finance Department, the website said.
Under the proposal, cars and SUVs will have a progressive excise tax rates of 10, 15, 25 and 35% while trucks and buses are exempted at zero rate, the website added.
“A 3% excise tax on AUVs is most affordable because this will only mean an additional P30,000 per unit on the current AUV prices,” an industry official told Manila Bulletin Online.
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By GlobalDataThe BOI, which earlier supported excise taxation based on the value of the vehicle, appeared amenable to the industry’s proposal especially that it means a positive revenue generation for the government, the website said.
