Best Posts in Thread: 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.

 

In my opinion the headline is, as usual, to move money from peoples pockets to government pockets. That's the name of the game regardless whether they call it road tax or any other kind of payment you can hardly escape.

Otherwise it shouldn't be unsaid that there is a lot of road works going on. There are certainly more and better roads in Dumaguete area compared to the situation a few years ago.

Government need to find a way to collect money. Hence the tax system is insufficient to raise funds they create other ways. It's simple. The people don't declare and pay taxes as they should do, so they get pressed to pay road taxes and other contributions that are higher than it should be.

This creates certainly injustice and is raising many questions. Anyhow I am afraid it will not change. Not as long as there is no proper and effective administration in place that take care that laws, rules and regulations are followed by everybody living in this country.

By the way, building new roads is fine. And absolutely necessary.
Once finished they should continue to build up proper medical aid system, a proper education system, a better and more reliable electricity, water supply and sewege system, better, faster and morr reliable internet connectivity, universities, schools, hospitals...........

There are so many things to do. Provided the government really wants to change things to a better, not sure about it, they need funds. They could increase income and corporate taxes but it's pretty useless cause nobody is paying anyway regardless it would be 10% or 20%.

This time they called it road tax.

 

Give the LTO their increase in fees with a couple requirements.

Use the money for severance pay and fire the people responsible for purchasing license plates and the people that buy plastic for licenses.
Purchase a portable crusher to dispose of motorcycles and cars with long overdue registration, inoperative safety equipment and motorcycles driven by underage drivers. In Bacong there seem to be a lot of 10-12 year old's driving around town.
Make the LTO offices work through the weekend so the common working person can renew their license. It's sad to hear of people lining up in the middle of the night to get a license. At one time (and maybe still) the LTO in Dumaguete would only process 100 licenses a day.

 

John, I fully agree with this and in my present circumstances this would work well for me.
Whilst living in PH I had sold my car back in UK and last year I bought one again there, but I had to consider a model that was going to be cheap to Tax, cheap to insure as I had no; No claims Bonus and had to start as a new driver in this respect. I opted for a small Yaris this is only £35 a year for RT, considering that I drive less than 2K miles in a year I do wonder if I can justify having a car at all? driving such low miles the cost to me per mile driven must be very high? added to that I hate driving such little cars, to further Feck me up they have a 6 speed manual in this little dinky toy, I have not a clue what gear I am in at any given time?

A Law should be passed to keep Auld Bar Stewards like myself off the roads, we are just a nuisance to all other road users anyway.

 

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

 

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.