Automobiles will be slapped a higher tax rate under the new version of the proposed Tax Reform for Acceleration and Inclusion Act, the Finance Department said over the weekend.
The proposal, which was adopted by Quirino Rep. Dakila Cua under House Bill 4774, aims to raise the current tax on cars with a net manufacturing or import price of up to P600,000 from the current 2 percent to 4 percent.
Vehicles priced above P600,000 will be taxed higher, with those over P2.1 million to be charged P1,224,000 plus 200 percent in excess of P2.1 million, under HB 4774.
Separate bills indexing the motor vehicle user’s fee to the cumulative inflation rate from 2004 to 2017, reflecting an 82 percent increase, and granting amnesty on past estate tax cases will also be filed as part of the tax reform plan, the department said.
The automobile tax adjustment is just one of the revenue-compensating measures under the tax reform proposal that aim to offset the reduction in personal income tax rates.
