How does the automobile excise affect brand new car prices now that the Tax Reform for Acceleration and Inclusion or TRAIN Act is in effect?
The law, effective since January 1, seeks to introduce new tax rates which will be added to the manufacturer’s or importer’s selling price. The following formula will apply to automobiles except for purely electric vehicles and pick-ups:
manufacturer’s price + auto excise rate + VAT
Take note that the TRAIN does not consider buses, cargo vans, jeepneys/jeepney substitutes, single-cab chassis, special-purpose vehicles, and trucks as automobiles. Meanwhile, a hybrid model will be subject to 50% of the applicable auto excise rate. Refer to the table below to see the tax you will have to pay for your dream car.
Now, you may want to know how the percentages translate in pesos. Toyota, the top-selling car manufacturer in the Philippines as of February 2017, has released its up-to-date price list.
Did your model of choice take a hit in the wake of the changes in the country’s tax system? Don’t worry. There are models that are unaffected by TRAIN, such as the Toyota HiLux Cab and Chassis, which remains at Php798,000. On the other hand, the prices of Toyota Hilux 4×4 2.8 G Dsl AT and Toyota Hilux 4×4 2.8 G Dsl MT were reduced. You can see the full list of unaffected and reduced prices here.
For the resourceful Filipino, all hope of owning a car soon is not lost. It’s good to know that Toyota Motor Philippines provides loan assistance to its customers through the Toyota Financial Services. Read the requirements and other answers to FAQs here.
Personally, what do you think of the reformed auto tax scheme? Does it have an effect on your plans to score that new Vios or Fortuner? Let us know in the comments.
This post was created in partnership with Toyota Philippines – Camarines Sur.