Excise Tax10:50 AM Friday March 10, 2017 |

Last year was generally a good year for the automotive industry. This year, we are facing a lot of uncertainties, one is the excise tax. We are preparing for the worst but still are hoping for the best. God help us please.

With the new excise tax law, vehicles priced at over 2.1 million pesos will be taxed at 60% of the import price PLUS another 60% of any amount in excess of 2.1 million. For example, Instead of the current price of 3M+, the price of Ford Expedition would double to 6 million++ pesos. The Ford Explorer, which sells for P2.5-P2.8 depending on the variant, would go for 5 million. Wow wow wow. No wonder Willie Soong is scratching his head. Imagine, a Range Rover Autobiography which sells for P10M-P12M would be priced at well over twenty million pesos, baka 25,000,000 pa. Whew! Only the super mega rich can afford to buy a Range Rover. When you see someone driving an Autobiography, kunin mong ninong sa kasal.

The imposition of higher excise taxes which would double the prices of luxury vehicles and increase the prices of ordinary vehicles would significantly decrease our volume, maybe by half. Ouuuch. Super OOOUUUCCCHHH! Okay lang sana if all other taxes would be cut in half and the cost of doing business drops too. Sana electricity, water, gasoline, cable, telephone, rentals, salaries and wages would all reduce their rates by 50% also.

1M and up
During my time, any vehicle that was priced at 500,000 was already considered a luxury. Pang milyonaryo na yun. Today, a one million vehicle is not a luxury. Vehicles that are less than 2M now are just for ordinary family use. Iyan ay panggamit araw-araw, pangsundo sa mga anak na nasa eskwela, pang pasok sa office, etc. 1.5 million is the price of a medium sized good brand vehicle. If this would be increased tremendously, it’s not only the rich that would suffer, but the aspirations of average working class who dreamed of owning a car of their own.

We all know that any commodity is bound to increase its price in time. Dati, apat na piso lang ang fresh mango shake, ngayon P150 sa restaurants. Sa hotel P300. Nung araw, for P20 Edmund and I were able to have sizzling steak. Ngayon, Pang tip lang yan sa parking attendant. Nung maliit pa si Oyen, P400 ang sweldo ng labandera, ngayon P5,000 minimum, with the condition na 3 lang kayong ipaglalaba at meron pang washing machine na kasama.

I hope the excise tax rates on luxury vehicles are reduced to a more reasonable level and not be imposed on medium-priced vehicles such as Ford Ecosport, Everest and Ranger.


  1. This news isn’t good. Why impose punishment on the average Filipino when they can’t even improve the mass transport system and traffic situation?

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