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Friday, March 29, 2024

Mitsubishi executive favors 4% excise tax

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Mitsubishi Motors Philippines Corp. is hoping the Senate will support the Congress version of the proposed automotive tax reform bill that will keep prices of vehicles at competitive rates.

Company vice president for marketing Froilan Dytianquin said the Congress version was reasonable and progressive and limited the excise tax increase to a final 4 percent by 2019.

“If we’re looking at the Congress version, it’s additional 1 percent in 2018 and another 1 percent increase in 2019. This is okay for us than the previous proposal which is very high,” he said at the welcome ceremonies for new Mitsubishi president Mutsuhiro Oshikiri held Thursday at Solaire Resort and Entertainment in Pasay City.

New Mitsubishi boss. Outgoing Mitsubishi Motors Philippines Corp. president and chief executive officer Yoshiaki Kato (right) congratulates incoming president and CEO Mutsuhiro Oshikiri in turnover rites Thursday night at Solaire Resorts and Casino in Parañaque City. Ey Acasio

The 4 percent excise tax will cover the small cars category. Automotive taxes on small cars when the proposed tax reform takes effect will be between P7,000 and P10,000 for the first phase in 2018 and another P7,000 to P10,000 in 2019.

The excise tax on small automobiles is currently at 2 percent.

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Mitsubishi started selling the Mirage G4 or the sedan-type in April 2017. Production of the Mirage Hatchback would follow soon, said Dytianquin.

Total production of locally-manufactured Mitsubishi vehicles stood at 42,000 in 2017, with Mirage accounting for 21,000. The rest are Adventure and L300 units.

Dytianquin said the company was maintaining the current price points for both Mirage G4 and hatchback.

Starting 2018, the company will be expanding production of the Mirage to 44,000 units based on its commitment to the Comprehensive Automotive Resurgence Strategy program of the Trade Department.

CARS offers P27 billion worth of time-bound and performance-based fiscal and non-fiscal incentives to support investments in new parts making capability and encourage large scale production in vehicle assembly.

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