The Department of Finance or (DOF) announced a new tax modification for automobiles. The tax reform is limited under Article VI of House Bill 4774 underwrote by Dakila Cua, Lone District representative of Quirino.
The revised excised taxes will be divided into varied price ranges.
According to House Bill 4774, the excise tax shall be up stretched to 4 percent from the 2 percent for automobiles priced up to P600,000.
If the price is P600,000 to P1,100,000 the tax rate would blow up at P24,000 plus additional 40 percent of the amount more than P600,000.
Cars with price of P1.1 million to P2.1 million would be taxed at P224,000 stretched up from the present P112,000 plus 100 percent of the amount more than P1.1 million.
If the car costs more than P2.1 million, the new tax would be at P1.22 million stretched up from P512,000 plus 200 percent of the amount more than P2.1 million.