The death of the car industry

[Wh1stl3r2]

http://www.autoindustriya.com/auto-i...r-hb-4774.html

Thought my thread title was bordering on dramatic. Not anymore.

If this goes through, Suzuki will become #1 as the Philippines becomes kei car country.

[StockEngine]

I still prefer the fuel tax proposal...

[jut703]

I still prefer the fuel tax proposal...

Even if 80% of diesel in the country is used for industrial/public transpo use?

I find the uniform excise tax to be disproportionately anti-poor. A 10% increase in transpo costs plus 5-6% average increase in most goods and services will greatly hurt those who live day to day.

On the other hand, increasing sticker prices of cars over 1M an additional 20% wouldn't really hurt the lower classes that much. Boohoo I can't afford an Everest anymore. Boohoo.

Ideally, public transpo should be improved first before crippling private car ownership and corruption should be lessened to maximize our taxes, but that's not bound to happen in the next decade. Meanwhile, income tax reduction is on its way to fruition, and government will have to plug the 50-150B annual deficit (depending on which tax reform version is passed) by increasing taxes on other things.

Honestly I think the upper classes get way too much leeway. I have never seen any businessman pay proper taxes, while employees have no choice.

When the 8 richest people in the world are richer than the bottom 3.5 billion, there's really a problem with income inequality.

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[CVT]

I'd still say give the money to the people and let them decide how to spend it....😍

[jut703]

I'd still say give the money to the people and let them decide how to spend it....😍

Given the ineffeciencies of our government, I also generally agree to a laissez faire approach.

The problem is that this admin has very ambitious infra spending goals, which conflicts with the reduction in income tax. An increase in disposable income of the average Juan cannot build roads and bridges.

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[minicarph]

this excise tax rumor & computation is being fed to the public para bumile ng car ngaun hangga't maaga. malay nyo CAMPI din nagpapalabas nyan lol

the government will not implement the excise tax coz bagsak ang OFW buying ng condos, nasa cars ang growth ng gdp natin last year. so why kill the only industry that's performing.

[StockEngine]

Even if 80% of diesel in the country is used for industrial/public transpo use?

I find the uniform excise tax to be disproportionately anti-poor. A 10% increase in transpo costs plus 5-6% average increase in most goods and services will greatly hurt those who live day to day.

On the other hand, increasing sticker prices of cars over 1M an additional 20% wouldn't really hurt the lower classes that much. Boohoo I can't afford an Everest anymore. Boohoo.

Ideally, public transpo should be improved first before crippling private car ownership and corruption should be lessened to maximize our taxes, but that's not bound to happen in the next decade. Meanwhile, income tax reduction is on its way to fruition, and government will have to plug the 50-150B annual deficit (depending on which tax reform version is passed) by increasing taxes on other things.

Honestly I think the upper classes get way too much leeway. I have never seen any businessman pay proper taxes, while employees have no choice.

When the 8 richest people in the world are richer than the bottom 3.5 billion, there's really a problem with income inequality.

Sent from my SM-N9208 using Tapatalk

Public transportation will not get excemption? Traffic congestion is because of higher vehicle volume from private owners.

If you have a car you pay for the road use via fuel tax.

[Wh1stl3r2]

I say implement a smaller excise tax on diesel only. Gasoline already has excise tax. We also have to remember gasoline being used by poor people specially in the provinces for motorcycles, tricycles, outboard motors, small generators, farm equipment, etc.

I don't see these new taxes helping city traffic much. The deficient public transport system will still be there. People in the cities will just buy smaller cars. Problem is, people in the provinces will also suffer additional transportation costs, which will slow down provincial development even further. Congestion charging in the cities is still the way to go. In Singapore's case it has all but solved their traffic problem and become a good source of government revenue. It will deter car usage independent of size/cost in urban areas while encouraging it in the provinces. And possibly help the car industry sustain its momentum, thereby maintaining government revenue from sales.

Singapore: The world’s first digital congestion charging system - Danish Architecture Centre

SINGAPORE: THE WORLD’S FIRST DIGITAL CONGESTION CHARGING SYSTEM

Already in 1975, Singapore implemented its first congestion charging system. The system improved during the years, from a low tech manpowered system to a high tech digital system. Today 65% of the commuters in Singapore use public transport and air pollution reductions are consequently significant.

Road Pricing is one way to manage traffic growth. In Singapore the system was first implemented in 1975 in the form of an Area license System (ALS) that charged drivers a flat rate for unlimited entries into Singapore's central area. The ALS system led to an almost immediate 45% reduction in traffic and a 25% decline in vehicle crashes. Average travel speeds increased from 11 mph to 21 mph. Initially there was an exempt for carpools, taxis, motorcycles, buses and commercial vehicles, which were license free. In 1990, they extended the Area Licensing System from covering only Singapore's business centre to also including expressways leading into the city.

The ALS was successful in reducing congestion, but had a high need of manpower i.e. to man the tollbooths. Also it had limitations in varying road pricing charges and it was inconvenient for the motorists waiting in line to pay to get through the tollgates. All this prompted a move to electronic toll collection in the form of Electronic Road Pricing (ERP).

In 1998, Singapore replaced the system with the Electronic Road Pricing (ERP) program, which uses modern technology. At the start of the journey a Cash Card is inserted into the On-Board Unit (OBU), which is fixed permanently in the vehicle and powered by the vehicle battery. When passing an ERP gantry the cash balance after the ERP charge deduction is shown on the OBU for 10 seconds. The electronic system has the ability to vary the prices based on traffic conditions and by vehicle type, time and location. Today all vehicles are charged, only emergency vehicles are exempted. In 2005 the coverage of ERP expanded the gantries around Singapore central business district and on major arterials and expressways. To ensure optimal use of road space and to maintain optimal speeds, the system is revised quarterly.

After replacing the ALS with the ERP system, traffic levels have decreased a further 15 percent. In addition, 65% of commuters now use public transport, an increase of nearly 20%. Reduced traffic in the charging zone led to a 176,400 pound reduction in CO2 emissions and a 22 pound reduction in particulate matter (soot). The system has curbed traffic demand and managed road space for highest productive capacity, cutting congestion, pollution, emissions, and fuel use.

The implementation of the ERP system has amounted to approximately 125 million USD and the annual revenue from the program is approximately 50 million USD. This creates a net profits per year surmounting 40 million USD and thus the ERP system has already paid for itself. The revenue from the system is among other things used for construction and maintenance of roads and public transportation.

[jut703]

Public transportation will not get excemption? Traffic congestion is because of higher vehicle volume from private owners.

If you have a car you pay for the road use via fuel tax.

Under the current proposal, there is a uniform P6.00/L excise tax to be charged for gasoline and diesel regardless of vehicle.

Also, exemptions for public transpo will be very, very, very hard to track. It's almost impossible to assure that the exemption will not be given to private vehicles because there's no way to track it.

Many stations don't use POS machines. A station owner can simply say that 70% of his diesel sales are from PUVs even if in reality it's only 20%.

I say implement a smaller excise tax on diesel only. Gasoline already has excise tax. We also have to remember gasoline being used by poor people specially in the provinces for motorcycles, tricycles, outboard motors, small generators, farm equipment, etc.

I don't see these new taxes helping city traffic much. The deficient public transport system will still be there. People in the cities will just buy smaller cars. Problem is, people in the provinces will also suffer additional transportation costs, which will slow down provincial development even further. Congestion charging in the cities is still the way to go. In Singapore's case it has all but solved their traffic problem and become a good source of government revenue. It will deter car usage independent of size/cost in urban areas while encouraging it in the provinces. And possibly help the car industry sustain its momentum, thereby maintaining government revenue from sales.

Singapore: The world’s first digital congestion charging system - Danish Architecture Centre

SINGAPORE: THE WORLD’S FIRST DIGITAL CONGESTION CHARGING SYSTEM

The key to success of Singapore's vehicle reduction plan is that there's a very viable alternative in the form of the MRT and their bus system.

Even if the gov't makes life hard (or expensive) for PH car owners, they will still choose to drive cars because the alternative (public transpo) is still a less convenieny option.

It's similar to Duterte's drug/crime war - EJK will not reduce criminality because they're not solving the root of the problem. The poor will continue to steal and deal drugs because that's the only way they can make a living. Having talked to a few convicts back in college, they all claim that their acts were borne out of necessity - if they had access to the opportunities of the upper classes, they wouldn't resort to crime.

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[StockEngine]

I dont think the car industry will die because of this proposed tax. 2017 sales target is over 500,000 units if my guess is right.