Proposed Tax Bill on Cars goes up to 60%

car tax philippines • Proposed Tax Bill on Cars goes up to 60%

Since traffic and the sheer volume of cars in Metro Manila has been one of the biggest problems for so many years, the current administration have been looking for ways to decongest the streets especially EDSA.

This is the reason why the No-Window Coding Scheme has been implemented this week and it was eventually extended up to 8PM. However, MMDA monitoring showed only about 10 minutes of travel time has been saved which isn’t really that much.

In other fronts, the House of Representatives are looking into reducing the volume of cars by increasing the Ad Valorem Tax. This is perhaps similar to what Singapore is doing to reduce sales of new cars.

The proposed bill will add the following tax brackets into sold cars at different price levels:

Php600,000 and below: 5% (+Php30,000)

Php600,000 – Php1,100,000: 20% (+Php120,000 – Php220,000)

Php1.1M – Php2.1M: 40% (Php440,000 – Php840,000)

Over Php2.1M: 60% (Php1.26M and higher)

  1. I also heard of one of the top 3 major car brand’s management cutting back on budgets because of this move. The business climate is surely to be greatly affected by this. Not gonna be good for business.

  2. Coupled with increase in tax on fuel also proposed by Duterte, the fare will go up for those taking public transpo like Grab and Uber.

    All of these because of high cost of vehicles, high cost of fuel, and still no abundant & efficient mass transport. Good thinking, huh?

  3. Reply Avatar of KULANTRO DE KULEBRA
    KULANTRO DE KULEBRA October 20, 2016 at 9:29 pm


  4. What we need is a stronger implementation of our traffic rules and heftier punishments for the rule breakers as well as integrating basic traffic laws in the schools’ curriculums at an early age.

    Most Filipinos, both drivers and pedestrians, seem to have this blatant disregard for the rules. For instance, they cut in line, switch lanes like every 5 seconds, park their cars wherever and generally have this very impatient “me first” attitude. No qualms about the negative ramifications of their actions to everyone else behind. Others see it happen and think since one or two does it, it’s okay for them to break the rules, too. They think they can do whatever they want with impunity while expecting the government to make things get better overnight. Then they blame the government as the sole cause of traffic jams or anything that goes awry in our country. Their lack of discipline, consideration, common sense and responsibility is appalling and hypocritical.

    I’m not saying the government doesn’t have its shortcomings either. Their members are guilty of tolerating and even joining in on this behavior and not putting pressure on the police or MMDA to reinforce the laws enough.

    How can we expect change to happen when many of us contribute to the problem?

  5. Nice. As if the prices of cars here are cheap. As compared to other 1st world countries where cars are cheap and salary is big. Those in the middle income families work hard to be able to buy cars as a necessity. These will be greatly affected. While those rich with businesses won’t have as significant an impact as those in the middle income range. Taxis, delivery trucks, pickups will become expensive also that would also translate to increase in cost/price of services/commodities. The rich will recoup their costs thru the same way also.

    Truth is the gov’t is in dire need for more taxes to be redirected to it’s objective (distributing funds to develop Mindanao region). So that when the federalism is in effect, will detach and leave each region to fend for themselves.

    When does the prices of cars goes back down and become affordable again? It’ll just be a dream for the most of us.

  6. pabor lng dito yung 2ndhand dealer e.
    ano ba yan bibili pa naman ako e

  7. Singapore can do this because they have a very good and efficient Subway system which is integrated very well within the city. but what will happen to manila Pila pa more and wait 15mins til the next train arrive. This is not the real solution. Built and improve a modern subway or Mrt system that can accommodate 10-20 carriage in 1 go. then implement this …

  8. Seriously? Then, the number of cars sold per year decrease which will result in lower sales and income for the company. Then, what? The company will have to cut down manpower to make up for lost sales and income? Don’t address those private vehicles. Instead address those public means of transportation. The buses, jeepneys, and of course, your ever failing mass transport systems.

  9. This is bad idea.
    Why would a solution to a problem in metro manila (include Metro Cebu if you want) affects the entire country??
    Kawawa naman yung mga gustong bumili ng bagong sasakyan na nasa probinsya kung dadagdagan pa ang presyo ng sasakyan. Bat kailangan nila mag suffer kng sa metro cities lng naman ang may problema sa traffic? Metro Manila does not equate to the entire Philippines.

  10. Looks good. This is how Singapore maintains their traffic condition.. but I’m not saying that it is the only way.. they also have a great public transportation system which I hope the government is working on..

    But I’d like to reverse the tax scheme.. as cheaper cars are coming out from the market, the people would more of those than the luxury.. so here’s my proposed tax scheme:

    Below 600k + 50%
    600k – 1.1M + 40%
    1.1 – 2.1M + 20%
    2.1M and up + 15%

    All of those would also be entitled to road tax of 20,000 a year + registration fee of 5,000

  11. This idea would be great if the mass transport system are convenient and comfortable. Buti pa sanang bawasan nlang ang mga jeep, city buses and taxi. Lalo na madaming mga jeep na hindi na nakarehistro pero nasa daan parin nakikipag-agawan ng pasahero. Mga jeep na hindi nmn sumusunod sa safety standards tulad ng hindi umaandar na headlight and taillight, smoke belchers and walang early warning device dapat hinuhuli para mabawasan ang traffic.

  12. Should have addressed the mass transport system first.

  13. Man, that’s stupid. Ang baba na nga ng sahod sa Pinas tapos lalo pang gagawing unaffordable ung mga sasakyan? Mga gago eh.

  14. hay… what do we expect from a congress that spent 4 days presenting witnesses after witnesses with nothing to show for it? tax the cars ang sagot with traffic… great effing idea.

  15. This is a bad idea; it’ll only encourage smuggling.

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