BIR removes pickup tax exemption
BIR Commissioner Romeo Lumagui Jr. removed the pickup tax exemption to ensure fair taxation for all vehicles under tax neutrality.
The Capital Markets Efficiency Promotion Act (CMEPA) allows taxing pickup trucks from 4% to 50%.
The Department of Finance urged the reimposition of the tax, citing that many pickup trucks serve both passenger transport and personal purposes, rather than deliveries.
BIR called the posts claiming bank deposits face a 20% withholding tax, the previous taxation of interest income on deposits.
CMEPA aims to simplify and equalize taxes for all depositors by removing exemptions currently granted to certain long-term deposit accounts.
Lumagui states CMEPA’s goal to simplify equalizing taxes for all depositors by removing preferential rates and exemptions for long-term deposits.
