By Junex Doronio
MANILA — Apparently in its bid to get additional revenues, the Department of Finance (DOF) under the new leadership of Secretary Ralph Recto is now eyeing pickup trucks to be subjected to excise taxes.
Finance Assistant Secretary Karlo Fermin Adriano noted that pickup trucks were granted special tax treatment under the TRAIN (Tax Reform for Acceleration and Inclusion) Law for their utility among small business owners and professionals in their livelihood.
“However, the Department of Trade and Industry observed that manufacturers modify pickup trucks to serve as passenger, leisure, or sports utility vehicles,” Adriano said before a Senate hearing on Monday.
It was learned that vehicles are taxed based on price under the TRAIN Law. Automobiles worth up to P600,000 are taxed 4 percent of their price, 10 percent for automobiles priced higher than P600,000 but below P1 million, and 20 percent for cars priced above P1 million but below P4 million. Cars worth P4 million or higher are slapped with a 50 percent tax.
There were proposals in Package 4 of the Comprehensive Tax Reform Program to remove pickup trucks from the exemption of excise tax on automobiles.
(el Amigo/MNM)
