Seminars Schedules

Chapter VI – Excise Tax on Miscellaneous Articles

Friday, 8 July 2011, 14:38 | Category : Excise Tax, National Taxes
Tags : ,


SEC. 149. Automobiles. – There shall be levied, assessed and collected an ad valorem tax on automobiles based on the manufacturer’s or importer’s selling price, net of excise and value-added tax, in accordance with the following schedule:

Net manufacturer’s

Price/importer’s selling

price

Rate

Up to P600,000  

2%

Over P600,000 to P1.1

Million

 P12,000+20% of value in

Excess of P600,000

Over P1.1 Million to

P2.1 Million

P112,000+40% of value in

Excess of 1.1 Million

Over P2.1 Million

P512,000+60% of value in

Excess of P2.1 Million

Provided, That the brackets reflecting the manufacturer’s price or importer’s selling price, net of excise and value-added taxes, will be indexed by the secretary of finance once every two (2) years if the change in the exchange rate of the Philippines peso against the United States (U.S.) dollar is more than ten percent (10%) from the date of effectivity of this Act, in the case of initial adjustment and from the last revision date in the case of subsequent adjustments.

The manufacturer’s price or importer’s selling price, net of excise and value-added taxes, shall be indexed by the full rate of the peso depreciation or appreciation, as the case may be.

Provided, further, That in case the change in the exchange rate of the Philippine peso against the U.S. dollar is at least twenty percent (20%) at any time within the two-year period referred to above. Secretary of Finance shall index the brackets reflecting the manufacturer’s price or importer’s selling price, net of excise and value-added taxes, by the full rate of the peso depreciation or appreciation, as the case may be.

As used in this Section —

(a)       Automobile shall mean any four (4) or more wheeled motor vehicle regardless of seating capacity, which is propelled by gasoline, diesel, electricity or any other motive power: Provided, That for purposes of this Act, buses, trucks, cargo vans, jeeps/jeepneys/jeepney substitutes, single cab chassis, and special purpose vehicles shall not be considered as automobiles.

(b)      Truck/cargo van shall mean a motor vehicle of any configuration that is exclusively designed for the carriage of goods and with any number of wheels and axles: Provided, that pick-ups shall not be considered as trucks.

(c)        Jeep/jeepneys/jeepney substitutes shall mean as “Philippine jeep or jeepneys’’ which are of the jitney type locally designed and manufactured generally from surplus parts and components. It shall also include jeepney substitutes that are manufactured from brand-new single cab chassis or cowl chassis and locally customized rear body that has continuous sideway row seats with open rear door and without retractable glass windows.

(d)       Bus shall mean a motor vehicle of any configuration with gross vehicle weight of 4.0 tons or more with any number of wheels and axles, which is generally accepted and specially designed for mass or public transportation.

(e)      Single cab chassis shall mean a motor vehicle with complete engine power train and chassis equipped with a cab that has a maximum of two (2) doors and only one (1) row of seats.

(f)        Special purpose vehicle shall mean a motor vehicle designed for specific application such as cement mixer, fire truck, boom truck, ambulance and/or medical unit, and off-road vehicles for heavy industries and not for recreational activities.

Provided, That in the case of imported automobiles not for sale, the tax imposed herein shall be based on the total landed value, including transaction value, customs duty and all other charges.

Automobiles used exclusively within the Freeport zone shall be exempt from excise tax.

SEC. 150. Non-essential Goods. – There shall be levied, assessed and collected a tax equivalent to twenty-percent (20%) based on the wholesale price or the value of importation used by the Bureau of Customs in determining tariff and customs duties, net of excise tax and value-added tax, of the following goods:

(a) All goods commonly or commercially known as jewelry, whether real or imitation, pearls, precious and semi-precious stones and imitations thereof; goods made of, or ornamented, mounted or fitted with, precious metals or imitations thereof or ivory (not including surgical and dental instruments, silver-plated wares, frames or mountings for spectacles or eyeglasses, and dental gold or gold alloys and other precious metals used in filling, mounting or fitting the teeth); opera glasses and lorgnettes. The term ‘precious metals’ shall include platinum, gold, silver and other metals of similar or greater value. The term ‘imitations thereof shall include platings and alloys of such metals;

(b) Perfumes and toilet waters;

(c) Yachts and other vessels intended for pleasure or sports.

Leave a comment

*