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)