How to stop the ‘supersurge’ of new car registrations
Many are rushing to buy new cars to beat the start of the effectivity of the law imposing the car excise tax. The lines of buyers at car dealerships are very long. Unfortunately this signals a worsening of the problem of having too many vehicles in our streets. The excise tax is going to come with the tax reform law, which is so complicated such that it may only see the light of day one or two years from now.
I agree that the tax on cars should be passed. But it does not have to be an excise tax. It can be a special tax on the use of cars in the first three years from initial registration, starting with new cars registered after President Duterte’s assumption to office. And it can be passed immediately and separately from the tax reform law. Thus, there will no longer be any compulsion to buy new cars to beat the enactment of law authorizing the collection of a car excise tax, and the objective of the administration shall have been realized earlier.
Moreover, by imposing taxes on fuel and other oil products, the Duterte administration hits the all of consuming public. Why not tax instead those who directly use fuels and exacerbate the monstrous traffic problem that is costing the national economy some P3 billion per day?
Firstly, there should be an annual tax on the age of vehicles. For instance, for cars five years old and below—P5,000; more than five years old to 10 years old—P10,000; more than 10 years old to 15 years old—P15,000; more than 15 years old to 20 years old—P20,000; more than 15 years old to 25 years old—P25,000, and so on.
Secondly, there should also be an annual tax on the engine displacement of vehicles to discourage gas guzzlers. For instance, for cars with 1600 cc—P2,000; with 2000 cc—P4,000; with 2400 cc—P6,000, and so on.
Thirdly, also to discourage gas guzzlers, there should also be an annual tax on the number of cylinders of vehicles. Perhaps, for cars with up to 4 cylinders—P5,000; above 4 cylinders to 6 cylinders—P10,000; above 6 cylinders to 8 cylinders—P15,000 and so on.
The suggested tax rates can be adjusted downward to a level which will sufficiently compensate the administration for dropping the counterproductive additional taxes on oil products, which will hurt the masses unnecessarily. It bears stressing that the taxes should be imposed on the owners of vehicles (especially the old ones and the gas guzzlers) to help clean up the environment and solve the problem of traffic congestion.
To those who think we still don’t have an efficient public transport system, they should understand that when the traffic congestion problem is solved, the public vehicles will now be able to make perhaps 9-10 round trips per day instead of the present 3-4 round trips and, correspondingly, carry more passengers.
RENE TORRES, Makati City
