Excise tax

With the increase in excise tax finally in effect, thanks to the Tax Reform for Acceleration and Inclusion (TRAIN) package, many are curious - even fearful - of how this will affect the pricing of vehicles in the Philippines. The Department of Finance (DOF) has made clarifications regarding the automobile excise tax. Contrart to rumors that the whole excise tax scheme will be implemented and will further raise car prices, the DOF clarified that they are proposing a more progressive increase instead to help the consumers not feel the increase as much as they though it would.   [table id=323 /] *New SRP was computed as (net manufacturer's price + excise tax + VAT) Also mentioned. the revenues raised through the car excise tax will be used to improve traffic management solutions and fund climate change-resilient infrastructure. An adage goes, "In this world nothing can be said to be certain, except death and taxes." For that matter, excise tax is a form of indirect tax, a kind of taxation that is more difficult to evade than direct taxes such as income tax or property tax. In principle, therefore, virtually everyone pays their share of taxes through the mix of direct and indirect taxes. Read more in our articles including "Toyota Philippines Car Prices for 2018" and "DOF clarifies proposed Car Tax".