BIG increases in vehicle taxes

Probably not of concern to most on the forum in terms of finances but some big increases in car taxes from next year:

Passenger cars with a gross vehicle weight of up to 1,600 kilograms (kg):
P2,080 in 2024
P2,560 in 2025
P3,040 in 2026
Five percent increase every year from 2027 onwards.

Passenger cars with a gross vehicle weight from 1,600 kg up to 2,300 kg:
P4,680 in 2024
P5,760 in 2025
P6,840 in 2026
Five percent increase every year from 2027 onwards.

Passenger cars with a gross vehicle weight of over 2,300 kg:
P10,400 in 2024
P12,800 in 2025
P15,200 in 2026
Five percent increase every year from 2027 onwards.

Meanwhile, utility vehicles will get the following MVRUT rates:
Utility cars with a gross vehicle weight of up to 4,500 kg:
P1.40 per kg in 2024
P2.50 per kg in 2025
P3.40 per kg in 2026
Five percent increase every year from 2027 onwards.

This is touted as "government’s most important fiscal instrument against traffic congestion". Maybe. But it's a good tax earner!

And “Most atrociously, this subsidy benefits the rich. Only 1.7 percent of cars were owned by (the) bottom 50 percent, while [the rich people] owned some 55.6 percent of cars,”. Valid point.

 

Though off topic: Wondering when they finally will introduce a yearly smoke test for all those junkshop trucks/buses causing a lot of pollution.

 

Since LTO itself admits that 65% of vehicles on the road are not registered, you would think the best money earner would be to get tough with the criminals who openly flout the law. But no, what LTO does is give an amnesty until the end of the year to anyone on the road caught without registration (which, let's be honest, cannot be many), who will just receive a warning. This has been touted by them as 'helping hard pressed motorists at this time'. So, the icing on the cake is then to penalize those that do pay by increasing the fees. If it wasn't so stupid it could come from a TV comedy series.

 

I'm sure you are looking at this upside down?

Every man and his Dog knows this to be the land of stupidity, perhaps this is even part of its charm and what makes it more fun here?

Now if things were to be done here in a more efficient and correct way this would put so many people out of a job.

So there you have it stupid works very well here, stop trying to be clever and feck everything up, most stupid people are happy and the reason the Philippines is often described as the land of smiles.

 

In the UK they forced shotgun owners to register their weapons (with a fee) - the crooks didn't bother. This is how life works.

 

I partly agree - I know that but I asked my dog and she was oblivious. Probably because she has the same mental capacity (and not referring to mine as she is in excess of it).

 

My dogs are on the redneck American plan
If they catch it and kill it they can eat it.
A few neighbors found this to be true when they came over without notice.
A little blood goes a LONG way to securing future privacy, even in the land of stupid and uninforced rules.
I also honestly think my dogs are smarter than most people here, at least with some training my dogs will change their habits and thinking- unlike many people who just do things because that's the way it has been for 3 generations or longer

 

Thank you for the update on the tax increases.

I'm missing something here. I cannot follow how this tax became a subsidy to the rich. Is it because they are the ones not paying it or is it getting kicked back to them in a way not described?

It seems like the rich owning the most cars would mean the rich are to pay the majority of the tax increase, while a full half of the population will only pay 1.7% of this tax and possibly less, because larger cars are more expensive to buy so they are less likely to be owned by lower wage earners.
100% -55.6 -1.7 =42.7% of the cars to be taxed are to be paid by the population between the bottom 50% of wage earners and the unknown, not given, percent of the rich.

 

I never did understand "Road Tax" evaluation here in UK, apart from the principal being used in Philippines.
Surely the fairest way to even out any revenue would be to put the "Road Tax" into the price of fuel.
The more you use the more you pay.....just a thought JB