Trade and Industry Secretary Alfredo E. Pascual has called for a review of the excise duty exemption for double cab pickup trucks, restricting this privilege to real utility workhorse vehicles (ordinary single cab and chassis pickups) and completely Not an equipped double cab. It is out of reach and not needed by micro, small and medium-sized enterprises (MSMEs).
Pascual is making this statement in support of the Department of the Treasury’s (DOF) position to remove excise duty exemptions for pickup trucks introduced under Republic Act No. 10963 or the Acceleration and Containment (Trains) Act tax reform. Announced.
The DTI chief explained that regular single cab and chassis pickups (actual utility vehicles) have always been excise exempt even before TRAIN. extended the exemption to double cab pickups to support
“However, imported double cab pickups are often fully fitted out passenger vehicles, lifestyle vehicles out of the need and reach of MSMEs. Excise duty exemption applies to the entire vehicle. Therefore, double cab pickup accessories are also exempt from excise tax,” said Pascual.
Both DOF and DTI observed that pickup trucks are now being modified to serve other purposes such as passenger cars, leisure or sport utility vehicles. This allowed the manufacturer to circumvent the provisions and exemption purposes of his TRAIN Act.
At a recent House Committee hearing on the ways and means, Treasury Secretary Benjamin E. Diocno, formerly known as the Passive Income and Financial Intermediation Tax Act (Pifita), was not passed during the Duterte administration. did. .
Whereas previous administrative tax packages were revenue-neutral, the DOF estimates that the elimination of excise duty exemptions for pickup trucks will generate additional tax revenue of PHP52.6 billion from 2022 to 2026.
Already, the Chamber of Philippine Automobile Manufacturers (CAMPI) has warned that removing the excise exemption for pickup trucks would undoubtedly increase prices and reduce demand for this commercial vehicle category, the most preferred commercial vehicle for MSMEs. I’m here.
Pickup or light truck sales this August increased 29.9% to 461 from 355 in August 2021. Same time last year.
Prices for imported pickup trucks range from P1 million to P3 million or more per vehicle.
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