Automakers need pickup vehicles to remain tax-exempt

THE excise tax exemption being loved by pickup vehicles ought to stay because it helps native companies, based on the Chamber of Automotive Producers of the Philippines, Inc. (CAMPI).

“The present setup for excise tax ought to be maintained as a result of that is very useful for small companies,” CAMPI President Rommel R. Gutierrez mentioned throughout an interview on the sidelines of the 8th Philippine Worldwide Motor Present (PIMS) in Pasay Metropolis final week.

Additional, he mentioned that the proposal to take away the excise tax exemption wouldn’t solely have an effect on the native automotive trade, but additionally native companies.

“This excise tax is not only concerning the auto trade. It’s concerning the multiplier impact of these items as a result of micro, small, and medium enterprises (MSMEs) are utilizing these (pickups) for his or her companies,” Mr. Gutierrez mentioned.

Nonetheless, Commerce Secretary Alfredo E. Pascual advised reporters in a Viber message over the weekend that he’s in favor of a overview of the excise tax exemption on double-cab pickup vehicles.

Mr. Pascual mentioned {that a} overview is required because the imported double-cab pickup truck is “often a totally accessorized passenger unit” and a “life-style automobile.”

“The common single-cab and chassis pickup, the actual utility workhorse automobile, has all the time been exempted from excise tax even earlier than Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Legislation. The TRAIN Legislation prolonged the exemption to the double-cab pickup ostensibly to assist the cargo mobility requirement of the MSME sector,” Mr. Pascual mentioned, including that the imported double-cab pickup is “removed from the necessity and attain of MSMEs.”

“Because the excise tax exemption applies to the entire automobile, the double-cab pickup equipment additionally get exempted from the excise tax,” he mentioned about favoring a overview of the excise tax exemption on double-cab pickup vehicles.

In August, the Home Methods and Means Committee accepted an expanded invoice containing the fourth bundle of the Complete Tax Reform Program, which additionally offered for the removing of the excise tax exemption on pickup vehicles.

Based on the Finance division, the elimination of the excise tax exemption is projected to generate P52.6 billion value of further revenues from 2022 to 2026.

In the meantime, Mr. Gutierrez mentioned that CAMPI remains to be making ready its place paper concerning the proposed removing of the excise tax exemption for pickup vehicles.

“It’s good that now we have supporters from the Senate and Home. We are going to talk about with them as quickly as potential,” he mentioned.

Mr. Gutierrez beforehand mentioned that the proposal is a priority for the trade since it’s anticipated to have an effect on costs and gross sales.

He added that eradicating the excise tax exemption would hinder the restoration of the native automotive trade.

The Newest CAMPI information confirmed that trade gross sales from January to August 2022 elevated by 25.1% to 212,872 offered models versus 170,112 models in the identical interval final 12 months. — Revin Mikhael D. Ochave

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