Discussion in 'Dumaguete City' started by Wrye83, Aug 22, 2017.
Starting 1 January 2018 (and again in 2019) expect to see a rise in vehicle excise taxes.
A local dealer told me they are so very busy now, with everyone trying to beat the tax hike. But I think owners of new vehicles still run into the problem of not being able to use them for about 2 months! If I was paying for the vehicle and 120% tax on top I would be surely p*ssed off if not able to drive it. Cheap cars should become more common, but is that a good thing? Will they have as many safety and environmental features as more expensive ones? Anyway, I am sure a very intelligent person must have worked it out.
It is a progressive tax. You won't be paying 120% tax on any vehicle.
FYI: They are raising the vehicle excise tax to make up for a politician following through on a campaign promise to lower the income tax. So yeah, I guess you could call that politician "smart". And I bet the next time he runs he will brag about how he lowered the income tax....maybe even offer to do it again. Careful making deals with the devil.
I doubt many care.
Do I see it correct that the more expensive the vehicle is costing the much more tax have to be paid? The increase is huuuuuge.
For that tax money of a 4 M car you could be able to buy a cheaper house.
At least it will help that there will less new cars on the streets.
Yeah, without 'Mr Dude' around I momentarily forgot where I am
Not if it means there are more old cars on the streets (not that, as 'Mr Wyre' points out, anyone will care).
That is totally insane! I am arriving in a few weeks and planning to buy a Fortuner when I get there. Already the current taxes are crazy high. What is the issue that prevents you from driving a new car for the first two months?
Noticed that I forgot the smilies on that sentence. It was meant ironically.
Then will still be more old crap on the streets or the car sellers makes their cars cheaper to get lower tax. Imagine that a car costing around US$ 100k will soon costs with the new tax near to US$ 150k. Only small cheap cars will not get a such hard hit.
Not sure if the "progressive tax" part is being fully understood. It works like the US federal income tax.
The first P599,999.99 of the price of any vehicle (no matter the cost) will be taxed at 3% (1% more than it currently is). Every peso above P600k will be taxed at 30% until you hit P1,099,999.99. Then 50% on every peso above P1.1M until P2.2M....and so on. The real tax rate is much lower than what is shown because of this.
If you buy a P2M car it will not be taxed at a full 50% and cost you P3M after taxes.
You can get a Fortuner for P600k or less unless you are buying new. You likely won't pay more than 3%. Even if you buy one for P600,001 it wouldn't jump up to 30%.
I believe the issue that stops people from driving the first two months is the issue with getting the plates. They are out of stock, sir.
Lol if you are buying a $100k USD car I bet you aren't all that concerned with a luxury tax.