Excise tax exemption on pick-up trucks to be removed soon?

A committee at the House of Representatives has approved a proposal that will put excise tax on pick-up trucks.

If turned into law, the expanded bill approved by the House Committee on Ways and Means (chaired by Albay Representative Joey Salceda), could raise the vehicle's pricing.

The expanded bill was based on the proposal of Department of Finance Secretary Benjamin Diokno. The proposed measure covers the removal of the tax exemption clause on the aforementioned commercial vehicle that was introduced under Republic Act 10963 — commonly known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

To note, the TRAIN Law was approved by then President Rodrigo Duterte.

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

The finance secretary cited the observation of the Department of Trade and Industry (DTI), stating that many manufacturers try to go around the provision by modifying the pick-up trucks to serve as passenger, leisure, or sport utility vehicles.

No details yet as to how much excise tax will be slapped on the pick-up trucks once the exemption is withdrawn, but should the expanded bill turn into law, buyers would be thinking more than twice on what vehicle they would put their hard-earned money into.

Photos from Ruben D. Manahan IV

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