BIZ BUZZ: Tax on pickups picks up
A high-ranking executive of one of the leading automotive companies in the Philippines told Biz Buzz that proposed legislation removing the excise tax exemption of pickup trucks will finally be passed by May of this year, raising concerns over how it will affect sales and prices of these vehicles, which are widely used as workhorses.
If this comes to pass, the company executive said the popular pickup trucks in the Philippines will be more expensive by about P200,000 each.
“The additional cost that will result from removing the exemption on excise is significant,” the company executive said.
This, in turn, will affect the recovery of the local automotive industry as the move is expected to drive some buyers away from this vehicle segment, which accounts for about 15 percent of total sales, according to the company executive.
To recall, the House of Representatives approved on final reading the measure back in November of last year, seeing it as a way to bring in incremental revenues for the government amounting to an estimated P18 billion on the first year and another P7.9 billion in the next.
— Alden Monzon
Flying from Clark
With virtually no more COVID-19 restrictions in place, passengers are busy pursuing their travel plans, may they be for business or leisure. And airlines are keeping up with them by mounting more flights from Clark International Airport, an alternative to the congested Ninoy Aquino International Airport.
Budget carrier Cebu Pacific is dedicating three aircraft for Clark operations, in addition to the 10 new units it is set to receive this year as it beefs up its fleet.
The Gokongwei-led airline is operating 13 domestic and international routes from Pampanga. These are Caticlan, Davao, Cebu, Iloilo, Bacolod, General Santos, Cagayan de Oro, Puerto Princesa, Hong Kong, Bangkok, Singapore, Narita and Macau.
“We are excited to reestablish our presence in such an important gateway that will boost accessibility and connectivity for the traveling public,” Cebu Pacific president and chief commercial officer Xander Lao said.
Philippine Airlines (PAL), meanwhile, will be reopening its flights from Clark to Caticlan and Busuanga by April.
“The revival of these direct flights will give travelers from Central and Northern Luzon a convenient new way to access Boracay and Coron, demonstrating Clark Airport’s position as a key jump off point to the country’s prime island destinations,” PAL president Stanley Ng said.
Last year, the Clark airport began the operation of its new passenger terminal building, which can serve 8 million passengers annually.
— Tyrone Jasper C. Piad
Maya’s muse
Manuel Pangilinan-led e-wallet service provider Maya is forging on with its quest of educating more Filipinos about digital banking through its new brand ambassador, Liza Soberano, who is among the shiniest stars of this generation’s show business personalities.
Soberano, designated as Maya’s chief advocacy officer, co-created a new marketing campaign to empower the public in managing their finances through the use of the latest technology.
“I’m excited for everyone to level up their banking experience with me through Maya because I love using their app,” said the actress who rose to popularity after top billing several romantic films.
“On top of that, working with Maya truly feels like a level up for me. It’s a joy to collaborate with them creatively, and I’m excited for the professional challenge of becoming their chief advocacy officer,” she added.
To encourage more Filipinos to save, Maya is offering up to a 10-percent interest rate for consumer savings accounts starting Mar. 7.
