ASEAN KEY DESTINATIONS
Vehicle sales down 13.7% in May as buyers purchased ahead of TRAIN —industry report
Vehicle sales slowed for the fourth straight month year-on-year in May, a joint report by the Chamber of Automotive Manufacturers of the Philippines Inc. and the Truck Manufacturers Association showed.
Buyers made purchases ahead of the Tax Reform for Acceleration and Inclusion (TRAIN) law, according to an industry executive.
The automotive industry sold 30,620 units in May, down 13.7 percent from 35,469 in the same month last year.
In the five months to May, vehicle sales were down 10.3 percent to 142,240 units from 158,533.
Slower sales were “indirectly” due to the TRAIN law, CAMPI president Rommel Gutierrez said.
“Customers made advance purchases in anticipation of the impending passage of the law late last year,” Gutierrez, who is also a first vice president at Toyota Motor Philippines Corp., told GMA News Online on Friday.
The proposed tax reform act was signed into law by President Rodrigo Duterte last December. It took effect on Jan.1, 2018.
Republic Act No. 10963 or the TRAIN law imposed a tax rate of 4 percent on vehicles costing P600,000 and below, from the previous rate of 2 percent.
Cars priced at P600,000 to P1 million were slapped with a 10-percent tax from 2 percent.
Cars priced between P1 million and P4 million were given a tax rate of 20 percent from the previous scheme of P112,000 plus 40 percent in excess of P1.1 million for cars costing P1.1 million to P2.1 million.
Vehicles that each cost P4 million and above were levied a rate of 50 percent from the previous scheme of P512,000 plus 60 percent in excess of P2.1 million.
“But we are seeing signs of recovery as month-on-month sales in 2018 continue to grow,” Gutierrez noted.
Month-on-month, vehicle sales posted a 19.7 percent increase from 25,583 units in April.
Toyota Motors Philippines Corp. accounted for most of the sales with a market share of 43.40 percent, followed by Mitsubishi Motors Philippines Corp. with 18.90 percent, Nissan Philippines with 7.36 percent, Ford Philippines with 7.31 percent, and Honda Cars Philippines Inc. with 7 percent.
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