THE Bureau of Customs said it fully supports the proposed bill in Congress to restructure the system for excise tax on brand-new automobiles.
The proposed adjustment in the excise tax on automobiles is included in the tax reform package that the Department of Finance submitted to the Congress. The BoC said the excise tax of imported cars will likely increase.
Customs Commissioner Nicanor Faeldon said he remains solid in supporting DoF in this proposal.
The DoF said that this proposal would make up for the estimated P139 billion in revenues that would be lost from the planned reductions in personal income tax rates.
Moreover, DoF said it does not expect car sales to dampen as a result of the additional excise because take-home pay of car buyers will increase significantly with the lowering of personal income tax.