BoC supports proposed changes to automobile excise tax


The Bureau of Customs (BoC) is fully supporting amendments to the excise tax on automobiles, the bureau said in a statement on Friday.

House Bill 4774, filed by Representative Dakila Carlo, seeks to amend certain provision of the National Internal Revenue Code of 1997:

For vehicles worth P600,000 or below: an increase in excise tax from 2 percent to 4 percent

For vehicles worth P600,000 but not more than P1.1 million: to impose an excise tax of P24,000 plus 40 percent of value in excess of P600,000

For vehicles worth over P1.1 million but not more than P2.1 million: to impose an excise tax of P224,000 plus 100 percent of value in excess of P1.1 million

For vehicles worth over P2.1 million: to an excise tax of P1,224,000 plus 200 percent of value in excess of P2.1 million.

Buses, trucks, cargo vans, jeepneys, vehicles with single cab chassis, and special purpose vehicles are still exempted from the excise, as originally proposed by the Department of Finance.

According to the DoF, excise tax collections will be used to fund infrastructure projects of the Duterte administration.

The department has argued that higher automobile excise tax is a must due to the P139 billion revenue loss from lowering the personal income tax.

The proposal may result in “lower investments in the auto industry and job squeeze, which run counter to the intent of the government to revitalize and further advance the growth of the industry,” the BOC Legal Service has said, according to the bureau’s statement.

The BOC’s Legal Service and Collection Service, both under the Revenue Collection Monitoring , committed to continue studying the impact of the proposal. Once done, the bureau intends to convey the findings to the Office of the Commissioner and the DoF.

The DoF earlier said it did not expect car sales to decline as a result of additional excise taxes as workers will have a higher take home pay with the lower personal income tax.

BOC Commissioner Nicanor Faeldon said he “remains solid” in supporting the DoF proposal.


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  1. Filipinos have been excessively taxes to a government leaning towards socialism promising to deliver freebies like candy. Car buyers should pay only sales tax and that’s it. Many car buyers have been lured by taking loans they can’t afford to repay because of covetousness wanting something they can’t afford to show off to friends and society. Filipinos are full of hot air and prone to personal corruption.

  2. Please think twice before amending this to a law. Yhis may kill the auto industry, specially for new car purchases. We should jack up the excise tax for cars whose price is over 2 million Php. Thats luxury already, but for those lives who had improved and can afford to buy cars will be affected. Or impose this new taxes on 2nd car of the family. Meaning to say if somebody has more than 2 cars in the same address , then impose the excise tax. the 1st thing to do is pass a law that enforces a “NO GARAGE NO CAR POLICY”

  3. make the excise tax an increase of 500% and this will greatly reduce the number of private cars on the road. stupid solutions to stupid ideas