Somewhat funny approaching at car vs. public transport

[Dr. Shiva]

AFAIK are cars builded in the ASEAN exempted from the import duty tax but not from the excise tax because the later is a sort of sale tax.

[Gary D]

I agree using port duty to describe the tax on a car was incorrect as it is effectively a purchase tax. But even a smallish car P600,000- 1.1m is still 22%. That's still a big mark- up

[Dave Hounddriver]

Where are you folks getting the numbers for the duty?  I have read that used cars get taxed with import duties of 20 to 30% PLUS a tax on the cubic inches of the motor averaging about 10% PLUS a 12% V.A.T.   I have also read that new cars can be purchased and imported but I cannot find numbers on exactly what the tax is on a new car.  Any links? 

[OnMyWay]

8 hours ago, Dave Hounddriver said:

Where are you folks getting the numbers for the duty?  I have read that used cars get taxed with import duties of 20 to 30% PLUS a tax on the cubic inches of the motor averaging about 10% PLUS a 12% V.A.T.   I have also read that new cars can be purchased and imported but I cannot find numbers on exactly what the tax is on a new car.  Any links? 

I don't think anyone mentioned duty accept Gary, who corrected that to mean tax.  I'm not sure where you would find reliable information on duties unless you contact BOC or a broker.  Anecdotally I think it was tossed around on the forum(s) that they kill you if you import a vehicle and duty could be more than 100% ???

Based on prices I have seen on new cars, it would seem correct that Asian built cars don't have duty, just the excise and VAT.  American and European built cars may have a duty, possible a big one.

[Gary D]

I don't know how to paste links from a kindle, if it's even possible.

https://www.bir.gov.ph/index.php/tax-information/excise-tax.html

go to table E.

Edited November 19, 2017 by Jollygoodfellow
fixed link

[Dave Hounddriver]

8 minutes ago, Gary D said:

www.bir.gov.ph/index.php/tax-information/excise-tax.html

Thanks Gary.  That looked incredibly simple, until I continued down the page past table E and on to D1 Automobiles.  Then it got all complicated again 

 

I know that the tax on used vehicles is high, but I also know people/companies who import new vehicles for resale.  It would be interesting to know what hurdles they jump.  Table E suggests an Excise tax of only 2% on the cheap vehicles.  For that price it may profit a man to buy new in another SE Asian country and ship it here.  Just musing wildly.

[Dave Hounddriver]

34 minutes ago, OnMyWay said:

Asian built cars don't have duty, just the excise

Vocabulary glitch.   I thought excise tax was the same as customs duty so I am confused again.  If there was no tax penalty for importing a new car then I wonder why more people don't shop other countries and have one shipped here.

[Jollygoodfellow]

2 hours ago, Gary D said:

I don't know how to paste links from a kindle, if it's even possible.

Same as a smart phone.

To copy text, tap and hold a word, then drag the markers to highlight the text you want to copy. Then, tap the highlighted text to add it to the clipboard. To paste, long-press a text field and select "Paste."

[OnMyWay]

39 minutes ago, Dave Hounddriver said:

Vocabulary glitch.   I thought excise tax was the same as customs duty so I am confused again.  If there was no tax penalty for importing a new car then I wonder why more people don't shop other countries and have one shipped here.

No.  Excise taxes apply to all goods, domestic or imported.  Duty applies to imported goods. 

For instance in the case of vehicles, a Toyota built in the Philippines would not a duty applied, but would have excise and VAT applied and included in the price.  (It might be possible that Toyota pays duty on parts, but unlikely.  Usually they have a deal that allows duty free importation in exchange for job creation, etc.)

A BMW built in Germany then imported might have duty, excise and VAT included in the price.

Looking at a few calcs of the new excise, it appears that the excise is added then the VAT is calculated.  Double taxation at it's best!

Regarding "shopping overseas" and then importing.  Technically once you buy a car overseas it is a used car and you would have to go through the hoops required to bring in a personal used car, which are substantial.  Importing used cars for resale is not allowed.

 

[Dave Hounddriver]

1 hour ago, OnMyWay said:

  Technically once you buy a car overseas it is a used car and you would have to go through the hoops required to bring in a personal used car, which are substantial

One would think so but then:

Quote

 

1. CAN ANYONE BRING IN A MOTOR VEHICLE?
Yes, provided that the motor vehicle is brand new. Under Bangko Sentral ng Pilipinas (BSP) Circular 92, Series of 1995, dated October 15, 1995, the importation of a brand-new motor vehicle of all types, including motorcycles has been liberalized and would no longer thus require prior authority to import.

2. WHEN IS A MOTOR VEHICLE BRAND NEW?
A motor vehicle is brand new if and only if the following criteria are satisfied:

a. That the motor vehicle is of current or advance year model; 

b. It has never been registered or used; 

c. It is covered by a certificate of first ownership; 

d. Of the year of the immediate preceding year in the country of origin and/or manufacture provided that:
1. The motor vehicle has a mileage of not more than 50 kilometers and; 

2. The motor vehicle has been acquired by the importer from the dealer as first owner.

 

http://www.manilaforwarder.com/vehicleshipment.html  That is the link the quote came from but I also checked BSP Circular 92 and they are accurate.