BOC supports restructuring of excise taxes on vehicles
The Bureau of Customs is supporting a bill seeking to restructure the system for excise taxes on brand-new vehicles.
House Bill No. 4774 introduced by Quirino Rep. Dakila Carlo Cua seeks to amend provisions of the National Internal Revenue Code of 1997.
Under HB 4774, the excise tax on brand-new automobiles will be modified as follows:
- vehicles worth P600,000 or below: increase the excise tax from two percent to four percent
- vehicles worth P600,000 to P1.1 million: excise tax will be P24,000 plus 40 percent of the value in excess of P600,000
- vehicles over P 1.1 million to P2.1 million: excise tax will be P224,000 plus 100 percent of the value in excess of P1.1 million
- vehicles over P 2.1 million: excise tax will be P1,224,000 plus 200 percent of the value in excess of P2.1 million.
However, buses, trucks, cargo vans, jeepneys, vehicles with single cab chassis, and special purpose vehicles will be exempted. —Julie M. Aurelio
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