Isuzu Philippines Corp. said it expects a big drop in vehicle sales in the first month of 2018, or once the new tax measure is implemented.
IPC vice president for marketing Joseph Bautista said the Philippine automotive sector was facing rough times ahead in terms of sales under the Tax Reform for Acceleration and Inclusion bill which was expected to take effect in January.
“By January we expect a big drop. The government targets to have this law implemented during the new year on Jan. 1,” he said. Congress approved a 4-tier tax scheme for automobiles, including a tax of 4 percent for vehicles worth up to P600,000; 10 percent for over P600,000 to P1 million; 20 percent for over P1 million to P4 million; and 50 percent for over P4 million.
Bautista said the vehicle associations were having a difficult time in coming up with sales projections for 2018. The industry set a sales target of 450,000 units in 2017.
Automotive sales hit 380,179 units in the first 11 months, according to the Chamber of Automotive Manufacturers of the Philippines Inc. and Truck Manufacturers Association. The tally excludes sales of another industry group”•the Association of Vehicle Importers and Distributors Inc.
