Pickup trucks could soon become even more expensive as the House committee on ways and means has just approved of a measure that will impose excise taxes on pickup trucks. As a quick refresher, pickup trucks are exempt from excise duties thanks to the current version of the TRAIN law. This was done because these vehicles were seen as “workhorses for smaller business owners and professionals.
However, thanks to Finance Secretary Benjamin Diokno, noted that the DTI observed that pickup trucks were rarely used to serve this function. Instead, the government organization stated that they were used as passenger, leisure, or sports utility vehicles.
That being said, Diokno sent a letter to the House ways and means committee chair and Albay Representative Joey Salceda stating that car manufacturers have been using this as a loophole and are reportedly circumventing the “law and purpose of their pickup truck model’s exception from the excise tax.
In response to this Salceda approved a measure removing the excise tax exemption from pickup trucks. If this gets signed into law, pickup trucks will be levied the same excise tax under the TRAIN law. This means that their prices will increase accordingly:
- P 600,000 and below – 4 percent
- Above P 600,000 to P 1,000,000 – 10 percent
- Above P 1,000,000 to P 4,000,000 – 20 percent
- Above P 4,000,000 – 50 percent
The further specifics of this measure have yet to be determined and there is no indication yet if pickup trucks as a whole will become no longer be exempt or will there be specific models such as single cab variants that will remain exempt from the excise taxation.
If this gets signed into law, pickup trucks could soon see a hefty increase in price, especially for the higher grade variants. This could also affect one of the fastest growing segments in the local automotive market just as how SUVs were big before the implementation of the TRAIN law.
Latest News
-
Mitsubishi Triton Black Edition debuts in Thailand—Is the Philippines next? / News
Mitsubishi's latest Triton Black Edition hits the market in Thailand, featuring exclusive rear-wheel drive and a stylish dark theme.
-
Chevrolet unveils the 2025 Corvette ZR1 / News
With 1,064 hp and 1,122 Nm of torque on tap, the twin-turbo 2025 Corvette ZR1 is the most powerful Corvette ever built.
-
BYD stirs up local crossover segment with new Sealion 6 DM-i Advanced / News
BYD has officially pulled the covers off the Sealion 6 DM-i, with a retail price of P1,580,000.
Popular Articles
-
Cheapest cars under P700,000 in the Philippines
Aug 25, 2023
-
First car or next car, the Ford EcoSport is a tough package to beat
Jun 18, 2021
-
Car Maintenance checklist and guide – here’s everything you need to know
Earl Lee · Jan 12, 2021
-
Most fuel efficient family cars in the Philippines
Bryan Aaron Rivera · Nov 27, 2020
-
2021 Geely Okavango — Everything you need to know
Joey Deriquito · Nov 19, 2020
-
Family cars in the Philippines with the biggest trunks
Sep 20, 2023
-
Head to head: Toyota Rush vs. Suzuki XL7
Joey Deriquito · Oct 28, 2020
-
Why oil changes are important for your car
Earl Lee · Nov 10, 2020
-
2021 Kia Stonic — What you need to know about it
Joey Deriquito · Oct 16, 2020
-
Top 7 tips for buying a used car in the Philippines
Joey Deriquito · Nov 26, 2020