Should we be panic-buying Maseratis now?
No matter what income bracket you fall under, there are things that will never be cool. Like higher tax on cars.
Buyers of high-end luxury brands like Ferrari, Lamborghini, Bentley and Rolls-Royce could be facing a higher excise tax on their vehicles following the new reform proposed by the Department of Finance. Under this proposal, machines worth over P2.1-million would end up being taxed at P1.22-million—a steep increase from P512,000.
Even more affordable vehicles within the P1.1 million to P2.1 million range would feel the brunt of the tax hike, as it would force buyers to cough up P224,000 more.
It's been suspected before that the momentum of the House's debate on increased tax for cars is ultimately working out a solution to the traffic congestion in Manila. Or, as Rep. Dakila Carlo Cua, author of House Bill 4774, admits, it is an attempt to "raise revenues for the government at least through the automobile."
As it is, the House committee and the automobile industry are still scrambling for the tipping point that determines the exact price which will influence a consumer's decision to purchase a car.
However, if excise tax rates do get imposed on high-end luxury cars in 2018, what is now theoretically worth, say, P20-million could end up reaching P57,020,000, according to The Philippine Star. That's just unreasonable, no matter how eager you are to splurge on a new set of wheels.
Investors, developers, and automobile players, what do you say?