ISUZU Philippines Corp. (IPC) wants the government to detail its plans to impose excise taxes on pick-up trucks given the impact on automakers' bottomlines.
Speaking to reporters during last week's ceremonies welcoming IPC's new president, company assistant sales division head Robert Carlos, sales assistant division head, said the automotive industry should be given enough time to adjust to the change.
"We fully support the government in their plans and programs for the betterment of the country. With regard to the implementation of excise tax on pickup trucks, we are requesting for consideration and the timeline of the implementation in order to plan accordingly," Carlos said.
"We also request for a review of our appeal because pickup trucks are primarily designed for utilitarian purposes as a business tool designed with an open bed intended to transport cargo. It is actually classified under N1 Category, which refers to vehicles used for the carriage of goods."The House Ways and Means committee last year approved the fourth package of the government's Comprehensive Tax Reform Program, which includes the elimination of the excise tax exemption for pickup trucks.
They were exempted from the under Republic Act 10963, or the Tax Reform for Acceleration and Inclusion law, with lawmakers declaring that it would benefit.
small business owners and professionals who use the trucks for work.
According to the Finance department, removal of the excise tax exemption will generate P52.6 billion in additional revenues from 2022 to 2026.
Carlos said IPC was still cautiously optimistic about 2023 growth. Despite many positive signs, logistics problems and inflation are persistent and the imposition of the excise tax will definitely impact sales.
Carlos said an uptrend was likely given the new admistration, economic growth, and continued reopening.
"[S]o, more cargo to deliver, more services to render and more people to transport. We are very optimistic and our supplies are getting better compared with last year," he said.
"For challenges, as mentioned, we still need to create our plans in case the excise tax on pickups will return. We also need to plan for the prevailing headwinds as well."