REPUBLIC ACT 10963
TRAIN LAW ACT OF 2017
CHAPTER VI – EXCISE TAX ON MISCELLANEOUS ARTICLE
Sec. 149. Automobiles. - There shall be levied, assessed and collected an ad valorem tax on automobiles based on the
manufacturer’s or importer’s selling price, net of excise and value-added tax, in accordance with the following schedule:
Effective January 1, 2018
Net manufacturer’s price/importer‘s selling price Rate
Up to Six hundred thousand pesos (₱600,000) Four percent (4%)
Over Six hundred thousand pesos (₱600,000) to One million pesos (₱1,000,000) Ten percent (10%)
Over One million pesos (₱1,000,000) to Four million pesos (₱4,000,000) Twenty percent (20%)
Over Four million pesos (₱4,000,000) Fifty percent (50%)
Provided, That hybrid vehicles shall be subject to fifty percent (50%) of the applicable excise tax rates on
automobiles under this Section: Provided, further, That purely electric vehicles and pick-ups shall be exempt from excise
tax on automobiles.
As used in this Section—
1. Automobile shall mean
1.1. any four (4) or more wheeled motor vehicle
1.2. regardless of seating capacity,
1.3. which is propelled by
[Link],
[Link],
[Link] or
[Link] other motive power:
1.4. Provided, That for purposes of this Act, the ff. shall not be considered as automobiles.
[Link],
[Link],
[Link] vans,
[Link]/jeepney substitutes,
[Link] cab chassis, and
[Link]-purpose vehicles
2. Truck/cargo van shall mean
2.1. a motor vehicle
2.2. of any configuration
2.3. that is exclusively designed for the carriage of goods
2.4. and with any number of wheels and axles:
2.5. Provided, That pick-ups shall be considered as trucks.
3. Jeepney/jeepney substitutes shall mean as
3.1. ‘Philippine jeep or jeepney’
3.2. which are of the jitney type
3.3. locally designed and manufactured generally from surplus parts and components.
3.4. It shall also include jeepney substitutes that are
3.5. manufactured from brand-new single cab chassis or cowl chassis
3.6. and locally customized rear body
3.7. that has continuous sideway row seats
3.8. with open rear door
3.9. and without retractable glass windows.
4. Bus shall mean
4.1. a motor vehicle
4.2. of any configuration
4.3. with gross vehicle weight of 4.0 tons or more
4.4. with any number of wheels and axles,
4.5. which is generally accepted and specially designed for or public transportation.
5. Single cab chassis shall mean
5.1. a motor vehicle
5.2. with complete engine power train and chassis
5.3. equipped with a cab
5.4. that has a maximum of two (2) doors
5.5. and only one (1) row of seats.
6. Special purpose vehicle shall mean
6.1. a motor vehicle
6.2. designed for specific applications
6.3. such as
[Link] mixer,
[Link] truck,
[Link] truck,
[Link] and/or medical unit, and
[Link]-road vehicles for heavy industries and not for recreational activities.
7. Hybrid electric vehicle shall mean
7.1. a motor vehicle
7.2. powered by electric energy,
7.3. with or without provision for off-vehicle charging,
7.4. in combination with
[Link],
[Link] or
[Link] other motive power:
7.5. Provided, That, for purposes of this Act, a hybrid electric vehicle must be able to propel itself from a
stationary condition using solely electric motor.
Provided, That in the case of imported automobiles not for sale, the tax imposed herein shall be based on the total landed
value, including transaction value, customs duty and all other charges.
Automobiles used exclusively within the freeport zone shall be exempt from excise tax."
