th images menu user export search eye clock list list2 arrow-left untitled twitter facebook googleplus instagram cross photos entrep-logo-svg

How Will Car Prices Be Affected by the Newly Approved Senate Tax Bill?

This infographic compares the Senate and House versions of the tax reform bill
By Entrepreneur Staff |

 

 

Some companies and their executives just have that impeccable sense of timing.

 

Just days after British luxury car brands Jaguar and Land Rover announced they are coming back to the Philippines after a six-month hiatus, the Philippine Senate approved a tax bill that offers friendlier excise tax rates on luxury cars compared to a version passed by the House of Representatives months earlier.

 

 

Related story: Unfazed by Looming Vehicle Excise Tax Increase, Luxury Car Brands Jaguar and Land rover are Back in PH


 

Under Senate Bill 1592, which was approved by the Senate last Tuesday, November 28, the proposed excise tax rates on motor vehicles will be simplified to just two tiers: 10 percent for cars selling for Php1 million or less, and 20 percent for cars selling above Php1 million.

 

In contrast, the House of Representatives approved a tax bill that imposes a more complex five-tier system that combines fixed taxes and variable rates ranging from four percent to 120 percent.

 

Analyzing how the two tax bills will impact retail prices of different car models with varying price points, the Action for Economic Reforms (AER), an economic policy advocacy and research group, concluded that the Senate version would tend to favor luxury car buyers while penalizing buyers of cheaper models.

 

“Though the Senate version’s structure is simpler, which would theoretically boost efficiency of collection, this comes at the expense of equity. It effectively taxes low-end vehicles higher, while providing discounts for luxury cars,” it said.

 

Representatives of both the Senate and the House of Representatives are expected to meet and reconcile the differences between their respective versions of the tax bill in the next few weeks when the bicameral conference committee starts meeting on the measure. If they agree on a common version, the bill is then submitted for ratification by both legislative bodies. After that, it goes to President Rodrigo Duterte who can choose to sign it, veto it or allow it to lapse into law by doing neither.

 

See the infographic on this page for a detailed comparison of how the current suggested retail prices of eight different car models would change depending on which version of the tax reform bill would prevail.

 

 

Related story: Guess What Happens to Your Personal Income Tax Dues Under The Newly Approved Income Tax Bill

 

 

*****

Latest Articles

How Much Money Do You Have to Make to Be Satisfied and Happy?

It's only a fraction of the millions you dream about

byLydia Belanger | February 26, 2018 06:00:00

8 Strategies to Become More Influential at Work

Wherever you are in the corporate structure, influencing skills are vital for anyone to be...

byConnie Wedel | February 26, 2018 02:00:00

Ryan Reynolds Just Bought a Gin Company He Called 'the Best on the Planet'

The company said Reynolds will 'play an active leadership role in the business and creative...

byAlison Millington | February 26, 2018 00:00:00

Did the 1986 EDSA People Power Revolution Make the Rich Richer?

Property boom boosts fortunes of the extremely wealthy even as widespread poverty persisted

byPauline Macaraeg | February 25, 2018 09:00:00

Ask the Relationship Expert: I Can't Stop Acting Like the Boss With My Partner

Sometimes you have to take off your 'boss' hat

byMarla N. Mattenson | February 25, 2018 08:00:00

10 Weird Habits That Can Actually Be Good for You

From cursing to fidgeting to eating chocolate, these so-called 'bad habits' can actually benefit you

byRose Leadem | February 25, 2018 06:00:00

7 Real-Life Business Lessons You Can Learn From Billionaires

The only variable you really control is how hard you work

byDeep Patel | February 25, 2018 02:00:00

Here's Why This Company Encourages Employees to Decorate Other People's Cubicles

It bridges the gap between work and personal life, making employees feel more connected.

byLydia Belanger | February 25, 2018 00:00:00

Try This New App To Help You Invest for Your Children’s Education

Manulife’s GradMaker app makes it easier and more accessible to invest your hard-earned money

byLorenzo Kyle Subido | February 24, 2018 09:00:00

How to Deal With the Criticism, "You need to be more likeable..."

Three ways to negotiate sexism in today's workplace

byCandace Sjogren | February 24, 2018 08:00:00

What Every Startup Must Do to Get Investor Ready

Fortune favors the prepared founder

byRyan Himmel | February 24, 2018 06:00:00

Can't We All Just Get Along? 5 Steps to Building Better Relationships

To succeed, you need to increase your versatility when it comes to people who are different from you

byDoug and Polly White | February 24, 2018 02:00:00