DO we want our car buffs happy? Of course, the answer is yes. But how come our lawmakers, if not our government leaders, are the first to seemingly make life hard for the motoring man? For, suddenly, they appear bent on making it difficult for our auto lovers to own a first-ever car?
Have our leaders become dream-breakers, as Rep. Miro Quimbo of Marikina City had put it?
“It is virtually every one’s dream to own a car and yet, why do we suddenly make it hard for someone to buy his or her first brand-new car?” Miro said to me a while back—yes, I bumped into him during the birthday celebration of noted painter Danilo Dalena at the CCP on Vito Cruz, Manila.
Miro said his own father had been virtually driving a second-hand car “for ages” that when his Dad suddenly had the chance to buy his first brand-new car, “it felt like heaven to him”.
But now this, a move to increase excise taxes on cars to be bought. Gosh, it’d be a punishment of sky-high proportions to our motorists, particularly to first-time car owners. Isn’t it incumbent upon our government leaders to make it easy on our folks, easing the burden on everyday life, especially in these times when making both ends meet has become more of a grind than a glide?
Twin reasons
THE twin reasons being cited by additional excise-tax advocates? 1) To generate more revenues for the government that is said to be cash-starved. 2) To ease traffic in the metropolis as fewer car buyers would mean fewer vehicles plying the massively congested roads of Metro Manila.
Okay, okay, the government needs money. But why get it from car buffs—and the auto industry, for God’s sakes?
In the first place, the rich will not be the direct casualties, as they always have money to burn. Increased excise taxes would hardly hurt their pockets, unlike the middle class, who have barely enough to spend for that dream car waiting to be acquired—finally.
In the second place, by punishing the middle class, the car industry becomes an automatic victim of collateral damage. Aren’t we supposed to be luring the manufacturing sector to grow—thus, the government’s Comprehensive Automotive Resurgence Strategy (CARS) Program to give incentives for car companies to produce more machines for job generation and to cultivate further the export segment adding for a robust economic growth?
Toyota and Mitsubishi
ALREADY, Toyota and Mitsubishi have fervently signified—and practically approved for implementation—their desire to join the government’s CARS Program that extends billions of subsidy over years of a manufacturing binge of not less than 200,000 vehicles built in six years or so. That might be stymied, if not stifled, if the proposed excise taxes on newly bought cars are to be adopted soon.
The scenario would be like this: A car, pegged at P1 million, would sell at P1.2 million, based on the proposal of the Department of Finance.
Car 2, priced from P600,000 to P1.1 million, would have an excise tax of P24,000, plus 40 percent of car value.
Car 3, worth P2.1 million, would cost P1.22 million, more, plus a 200-percent more in excess of P2.1 million. If you are pouting, biting your lips, in anger, take a deep breath. A walk in the park might help, if not beer or wine.
And if, by any chance, you are now thinking of buying a motorcycle instead, can’t blame you there, either.
Record to be broken?
THE year just past saw the industry sell a record total of 350,000-plus cars.
Will that be broken this year?
I doubt it. Seriously.
And, if we stretch it a little bit further, what will happen to the sales target of 500,000 vehicles or so by 2020?
Only a lunatic might consider that happening now.
Don’t even count on it anymore: The dream vehicle for the family has got to wait—a little longer, if not forever.
Indeed, there is a forever?
Tsk, tsk, tsk.
PEE STOP Kei Mizuguchi has succeeded Yohei Murase as executive vice president of Toyota Motor Philippines. Kei, directly under TMP President Satoru Suzuki, appears wholesome and jolly-laden in complete contrast to the stern-looking, poker-faced Murase. Jade Sison, TMP’s sweet information chief, describes Kei as “super nice and super friendly”. Welcome to the Phlippines, Kei-san! Kampai!…Too bad Vernon B. Sarne had a short-lived stint as Motoring editor of The Manila Times, after having stayed 11 years or so as the top gun at Top Gear Philippines. The next one to catch Vernon will score a jackpot, as always.