Toyota Motor Philippines Corp. (TMP) will continue to appeal for the retention of exercise tax exemption of pick-up trucks.
Rommel Gutierrez, TMP first vice president, said pick-up trucks are utility vehicles that should be incentivized, like what is being practiced in Thailand.
While no formal proposals have been tabled since the plan is a rider to an existing bill, Gutierrez nevertheless believes there should be consistency in policies.
Excise tax exemption of pick-up trucks was introduced under Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion Law of 2017.
Gutierrez also warned the possible increase in prices resulting from the excise tax would pull down the sales of pick-up trucks, negating the objective of government of raising revenues.
“Right now, we are just monitoring… the proposal would really depend on the progress of the law. Perhaps there are more urgent bills,” Gutierrez said.
Taxing pick-up trucks was first proposed by the House Ways and Means Committee last year and was part of the additional tax measures under Passive Income and Financial Intermediary Taxation Act. The bill failed to pass during the Duterte administration.
Excise tax exemption of pick-up trucks was an incentive for small businesses which use the vehicle for commercial purposes. But over time, pick-up trucks have been modified for leisure purpose and sport utility.
The Department of Finance earlier estimated removal of exemption would generate revenues of P52.6 billion from 2022 to 2026. Irma Isip
