CAMPI chief expresses concern on possible excise tax on pick-up trucks

The leadership of the Chamber of Automobile Manufacturers of the Philippines, Inc. (CAMPI) expressed the group's concern over the possible removal of excise tax exemption on pick-up trucks.

During the press conference for the upcoming 8th Philippine International Motor Show, CAMPI President Rommel Gutierrez said that imposing excise tax on the aforementioned vehicle body type would affect the country’s vehicle sales, noting that demand for vehicles is price-sensitive.

The CAMPI president also said that the local automotive industry is still in the process of recovering from the effects of the pandemic.

The light commercial vehicle (LCV) segment — which includes pick-up trucks — reflects a substantial increase in sales volume. Based on CAMPI’s January-July 2022 sales report, the LCV sector was able to roll out 108,600 units in the full seven months of the year and holds the majority share of the market.

Earlier, the House Committee on Ways and Meansapproved an expanded bill that seeks to remove the tax exemption clause on pick-up trucks that was introduced under Republic Act 10963 — commonly known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

The expanded bill was based on the proposal of Department of Finance Secretary Benjamin Diokno. 

Diokno said that putting excise tax on pick-up trucks will result in an additional government revenue of around P52.6 billion from 2022 to 2026.

Photos from Ruben D. Manahan IV, Toyota Motor Philippines

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