The phrase ‘excise tax’ strikes fear into the hearts of many prospective car buyers, but for 2019, potential customers will be delighted to know that there will be no additional excise tax for brand new cars.
Under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, prices of automobiles and fuel ballooned into an all-time high back in 2018. The ‘excise tax’ sales strategy became prevalent in dealerships as Filipinos were scurrying left and right for the chance to drive a brand new car off the lot. After all, who doesn’t love a good deal? Driving that new car home and out in Metro Manila was a different ordeal in itself. Rising fuel prices made driving around in one’s new acquisition a short-lived and wallet-hurting experience.
Under the aforementioned TRAIN law however, 2019 will be seeing – once again – another fuel price hike. At an additional Php 2.00 per liter of fuel, prices will continue to rise as the year progresses.
Good thing that’s the bad news. The good news is prices of brand new vehicles will receive no increase, as no additional tax is to be filled for the year of 2019 according to the Department of Finance (DOF).
Announced earlier In its Facebook post, the DOF also urged consumers to be vigilant in keeping an eye out for profiteers; salesmen that are looking to eek out extra profit through non-disclosure of actual pricing. The public is also urged to keep an eye out for anyone, dealership or salesman, engaging in the unlawful act of profiteering.
You may report your findings to DOF’s Facebook and Twitter accounts.
Looking ahead, the additional excise tax for fuel will come in waves. Another increase is slated to happen in the year 2020. For now, prices of vehicles will remain constant.