Wednesday, January 24, 2018

Isuzu Philippines Releases Vehicle Prices Inclusive of New Excise Tax


The country’s leading commercial vehicle (CV) manufacturer, Isuzu Philippines Corporation (IPC), has just announced its new suggested retail prices (SRP) that take into account the Tax Reform for Acceleration and Inclusion (TRAIN), otherwise known as the excise tax.

As expected, vehicles that fell in the P 1.4 million to P 2 million-peso SRP bracket (as of December 2017) sees the biggest increase this January. In particular, IPC’s best-selling mu-X gets slapped by anywhere between 4 to 16 percent increase effective today. The variant that gets penalized the most is the 4x2 LS-A Blue Power whose SRP jumps P 247,000 to P 1,845,000 followed by the 4x4 LS-A Blue Power that ends up breaching the two-million-peso mark to P 2,145,000 (from 1,908,000).

Meanwhile, D-MAX prices remain steady for January since IPC says they are all 2017 stocks. IPC will be announcing prices taking into account the pickup truck’s exemption from the excise tax at a later date.

Perhaps the oddest news with IPC’s January 2018 price list is the increase in SRP for its Euro 2 emissions compliant vehicles which are being phased out. Although the Crosswind has seen its model variants reduced significantly (from ten to three), they have all seen increases in the 5 to 7 percent bracket.

Here is a possible explanation:

Under the Bureau of Internal Revenue (BIR)’s Revenue Regulation No. 25-2003, it states that assemblers pay the excise duty for locally manufactured automobiles “before removal from the place of production/assembly.

This has been reiterated under the recently released BIR Revenue Regulation 05-2018 that details the transitionary period between pre- and post-TRAIN.

In Section 6, it reads:
“All manufacturers/assemblers or importers shall submit a duly notarized list of inventory on-hand of Completely Built-Up (CBU) automobiles, including Completely Knocked Down (CKD) and Semi-Knocked Down (SKD) units, that are located within the manufacturing/assembly plant, storage facility or warehouse or customs’ premises for which import duties have been filed as of the day immediately before the date of effectivity of these Regulations [January 1, 2018], indicating therein the brand, year model, engine, body and chassis numbers thereof. The list shall be submitted to the Commissioner of Internal Revenue within seven (7) working days from the date of effectivity of these Regulations. Failure to submit the inventory list on the part of the manufacturers/assemblers/importers shall be construed that the said manufacturers/assemblers/importers do not have any inventory on hand of CBUs, CKDs, and SKDs as of the day immediately before the date of effectivity of these Regulations.
In other words, IPC could have opted not to report that they had Crosswinds ready to be delivered to Isuzu dealers and thus, are affected by TRAIN.

But if this is the case, can IPC claim to sell Crosswinds that are built before January 1, 2018 (based on CSR) but are subject to excise tax that took effect on January 1, 2018? Conversely, can they sell non-Euro 4 emissions compliant Crosswinds with CSRs issued after January 1, 2018?

We have reached out to IPC regarding this matter and this is what they had to say:

Euro 2 emission compliant vehicles such as the Crosswind already at the dealerships have CSRs issued and are subject to the old excise tax scheme. However, all IPC stocks (located in manufacturing or storage facilities) are subject to the new excise tax.

Check out the full prices below:

13 comments:

  1. SLN na ang Crosswind. Keeping back the memories of Crosswind.

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  2. 1.3M for a piece of s*** crosswind?! And yet people still buy it?!

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    Replies
    1. Isuzu takes advantage of the 3rd world mentality most pinoys have. Mababa ang tingin nila sa atin.
      Look at toyota, nag labas sila ng vvti variant sa vios years back in anticipation of euro4 requirement dito. Samantala ang itong isuzu at mitsubishi nag pilit pa maka benta ng euro2 units nila till this year.

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  3. Crosswind for ofw yan.
    Ok na Basta leather seats at meron aircon.

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  4. Kadiri talaga isuso, your still selling crosswind? Have you not earned enough from this model? Tulungan nyo nman ang mga tao na nagipon ng pera na hindi mag mukang tanga.

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  5. If the government gave hybrid cars lower tax. Then euro 2 vehicles should have double the tax.
    Para wala ng maloko itong crosswind at adventure

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  6. "RIP" to "Isuso" Crosswind....

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  7. Huge price increase for MU-x. Parang mas mahal pa sa montero at halos kapresyo na ng Z71 ng Trailblazer

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  8. Tanga nalang talaga ang magpapaloko dito sa Isuso ay este Isuzu.

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  9. so the upcoming 1.9 blue mu-x should cost around 1.6m right?

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  10. New face lifted MUX looks like they force fitted the led lights on the old shell. Masabi lang nga bago.

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  11. mu-x so expensive, dual airbags only. Better buy Fortuner 2.4 G or Montero Sport 2.4 GLS at lower price and dual airbags and many safety features or Montero Sport 2.4 GLS Premium at around 1.8M with 7 airbags, leather seats and complete safety features similar to mu-x, di ba, tama?

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  12. Trash Isuso, nilagyan lang ng led ang heaglight 1.8M na bili nalang akong ng Foton. Brainless nalang bibili nyan.

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