A car showroom of Toyota in Metro Manila (AFP FILE PHOTO)
The Bureau of Internal Revenue has issued the guidelines for the increase in the excise taxes on minerals, cigarettes, vehicles, and in the documentary stamp tax rates under the Tax Reform for Acceleration and Inclusion (TRAIN) act.
The four revenue regulations (RR) signed by Finance Secretary Carlos G. Dominguez III and Internal Revenue Commissioner Caesar R. Dulay and published yesterday, which will serve as the implementing rules and regulations of Republic Act No. 10963, were earlier deemed by the BIR as the “least contentious” among the TRAIN’s different provisions.
“For indigenous petroleum, the tax is 6 percent of the fair international market price on the first taxable sale, barter, exchange or such similar transaction, such tax to be paid by the buyer or purchaser before removal from the place of production,” the BIR said.
The BIR defined indigenous petroleum as “locally extracted mineral oil, hydrocarbon gas, bitumen, crude asphalt, mineral gas and all other similar or naturally associated substances with the exception of coal, peat, bituminous shale and/or stratified mineral deposits.”
According to RR 5-2018, the ad valorem taxes on automobiles will be as follow: 4 percent for units with a net manufacturer’s price/importer’s selling price of up to P600,000; 10 percent for units priced over P600,000 to P1 million; 20 percent for those priced over P1 million to P4 million, and 50 percent for luxury vehicles priced over P4 million.
Hybrid vehicles, on the other hand, will be taxed at half of the applicable excise tax rates.
Electric vehicles as well as pickup trucks will enjoy exemption from excise taxes. —BEN O. DE VERA
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