The amended regulations also defined the scope and definition of automobiles which refer to any four or more wheeled motor vehicles regardless of seating capacity, which are propelled by gasoline, diesel, electricty or any other motive power.
Any other motor vehicle, though referred to or othewise denominated as truck, cargo van, jeepney, bus, single cab chasis, or special purpose vehicle, but not falling within the purview of the definition shall be classified as automobiles and therefore subject to excise tax.
On locally manufactured or assembled automobiles, the excise tax shall be paid by the manufacturer or assembler. Should locally manufactured or assembled automobiles be removed from the pace of manufacturer or assembly without the payment of the tax, the dealer, trader or owner shall be liable for the excise tax.
And in case of transfer of locally manufactured or assembled automobiles from a tax-exempt person to a non-tax exempt individual or entity, the transferee or possessor shall be the one liable for the excise tax.
On the other hand, for imported automobiles, the excise tax shall be paid by the owner or importer of the said vehicle or by the dealer or by any peson who is found in posession of any untaxed automobiles, including any person other than the one legally entitled to exemption from the ad valorem tax.
And in cases where automobiles are brought or imported tax-free by persons, entities or agencies exempt from tax and are subsequently sold, transferred or exchanged in the country to non-exempt persons or entites, the persons or entites where the automobiles are sold, transferred or exchanged shall pay the excise tax.
The rates and bases of the ad valorem tax on automobiles shall be levied on the manufacturers, assemblers or importers selling price, net of excise and value added tax in accordance with the following:
Automobiles with a price tag of up to P600,000, the tax rate is two percent; over P600,000 to P1 million, the tax rate is P12,000 plus 20 percent of the value in excess of P600,000; over P1 million to P2 million, P112,000 plus 40 percent of the value in excess of P1 million and over P2 million, P512,000 plus 60 percent of the value in excess of P2 million.