How Does The Government’s Tax Reform Program Affect Cars?

How Does The Government’s Tax Reform Program Affect Cars?

After a year of debates, President Duterte signed the Tax Reform for Acceleration and Inclusion (TRAIN) Bill on December 19, 2017. With this, the tax reform law (RA 10963) makes several changes to the 1997 Internal Revenue Code. Among these, the new law has made some adjustments that affect car owners and dealers alike.

Here are the things we know so far. We will update this page if there are updates so check back every so often.

 

New Car Tax Schedule

The new car tax schedule makes several changes to the previous. It also taxes hybrid cars by only half compared to non-hybrid cars. Check out the car tax schedule based on the tax reform program below:

In addition to this, the new car tax schedule also provides tax exemptions for certain types of cars:

Click here to view the full text of the new car tax schedule under the Train law. It can be found on pages 62-64.

As of writing, the following car companies have updated their suggested retail prices for 2018 given the tax reform law’s enactment:

We will update this list as more car companies update their prices.

 

New Fuel Tax Schedule

Aside from adjustments to the car tax schedule, the government’s tax reform program raises taxes on petroleum products over 3 tranches from 2018 to 2020.

Click here to view the full text of the new petroleum tax schedule under the TRAIN law. It can be found on pages 50-60.

While speculations over the tax reform program continue to be divisive, these are the facts we are certain of. Regardless of how it plays out, being discerning and wise when consuming and purchasing remains important.

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