Prices
of second-hand commercial vehicles have risen by as much as
Php150,000, a result of the Tax Reform for Acceleration and Inclusion
Act (TRAIN).
This
was revealed by top buy-and-sell website OLX
based on second-hand commercial vehicles ad postings on the portal,
from January 2017 to April 2018. Speculations on the TRAIN Law
fuelled the price increase on the 3rd quarter of 2017 and continue
long after it was implemented early this year.
The
TRAIN Law has influenced the resale value of one to two-year old cars
with an average increase of P90,000. Among these are units with
original retail price of P1million and above such as Toyota Innova,
Honda CR-V, Toyota Fortuner, Mitsubishi Montero and Ford Everest.
The
first tax reform package of the present administration, the TRAIN Law
provides for the increase in take-home pay of Filipino workers by
reducing income tax rates while increasing and rationalizing tax
rates in other goods and services. For automobiles, TRAIN simplifies
excise tax but lower-priced cars continue to be taxed at a lower rate
while more expensive cars are taxed at a higher rate.
“The
data we released is our way of guiding buyers in determining which
second-hand vehicles have significantly increased in price,” says
OLX Head of Cars Xervin Maulanin. “This will also help them
evaluate the difference in buying pre-owned versus brand new cars.”
Meanwhile,
no significant effect can be seen on prices of entry level passenger
cars like Toyota Vios, Honda City and Hyundai Accent.
Additionally,
Maulanin also notes, “Despite talks about the TRAIN Law in the
third quarter of 2017, the demand for second-hand cars continued to
increase.”
Even
with the price hike, OLX’s data indicates a steady market for
pre-owned vehicles, from high-value to entry level, as the ad posting
for second-hand vehicles continues to be on the upswing.
Post a Comment