Over the past few weeks, news has been circulating that the government plans to raise excise taxes on motor vehicles within the next few months. True enough, the Department of Finance has passed a tax reform bill for approval by Congress.
Yet the move, which will see automotive prices hiked due to excise taxes based on the vehicle value, may be counter to programs like the Department of Trade and Industry’s (DTI) Comprehensive Automotive Resurgence Strategy (CARS). The said program has the end goal of stimulating local automotive production by granting tax breaks and other incentives to qualified automakers. This, in effect, will help boost automotive sales due to lower prices, among others.
Yet while the two government agencies seem to be tugging at opposite ends, they actually agreed to come up with a common ground to the tussle. The proposal should see a win-win situation for the DOF’s tax collection moves and the DTI’s economic stimulus package. The two government bodies hope to complete their proposal by this month, which will then be sent to Congress for approval.
Whatever the new proposal is, we just hope that it will benefit the consumer the most. After all, we’re the ones being served, right?
