Are you looking to buy a brand new car this 2019? Don’t be fooled by salesmen bumping up prices of cars though saying that there is an increase in price due to the another increase of excise tax. The Department of Finance (DoF) has announced that no new additional excise tax will be imposed on vehicles this 2019 under the TRAIN law.
In 2018, prices of most vehicles and fuel increased due to the implementation of the new TRAIN law which brought forth additional taxes on both brand new vehicles purchases and fuel. This 2019, prices of fuel are set to rise once again as the government rolls out the second tranche of the TRAIN law and implement an additional Php 2-per per liter of fuel. However, prices of vehicles are set to remain the same as no additional tax hike will be implemented on brand new vehicle sales says the DoF.
The DoF is warning consumers to be wary of those trying to earn additional profit by hiking up prices of vehicles following claims of additional excise tax. In fact, they are even advising the public to report such cases of profiteering through their social media accounts on Facebook and Twitter.
Last year, Philippine auto sales already saw a decrease in vehicle sales having only sold 401,803 units in 2018, a 15% decrease compared to that of 2017 due to the increase in taxes. In particular, premium vehicles sales took a large hit with the additional taxes as seen in their sales records. Specifically, the top 3 premium brands recorded an average sales decline of above 50% compared to that of 2017.
For reference, the government has announced that only fuel will experience an additional excise tax in a number of phases – one in 2018, one in 2019 and finally in 2020. At the moment, the government has announced that automobiles will not have an additional increase in taxes. You may check out our previous news bit on the TRAIN law here.