CarsWheels

No Price Increase for MG Philippines Until May 15, 2021

If you’ve been eyeing an MG lately, now is the time to get it. The brand has announced it will retain the SRP on all their vehicles until May 15, 2021, which means there will be no price increase for MG vehicles until that date. After that. there will be a noticeable price bump thereafter due to the provisional safeguard duty imposed by the DTI.

As some of you might know, the Department of Trade and Industry (DTI) has been imposing provisional safeguard duty on imported vehicles since January 20, 2021, to “protect the local car manufacturing industry.” Because of this, the Bureau of Customs (BOC) issued Customs Memorandum Order (CMO) No. 6-2021, which imposes the provisional safeguard duty on selected imported vehicles in the form of a cash bond.

No Price Increase for MG Philippines Until May 15, 2021As all of MG’s vehicles are imported, the brand is required to post a Php 70,000 cash bond per unit that they import.

To lessen the burden on its customers, MG has incorporated the safeguard bond into the current suggested retail price. This is why the SRP of every MG vehicle has remained the same since then. However, as the saying goes, all good things must come to an end. The unaffected SRP will last only until May 15, 2021.

Moreover, once the provisional safeguard duty is made permanent by the DTI, this safeguard duty included in the total price of the vehicle is subject to Value Added Tax (VAT). Meaning, on top of the Php 70,000, there’s still an additional Php 8,400 for the Value Added Tax (VAT)—12%. 

But then again, all this is still provisional. This is why it’s called “provisional safeguard duty”. It’s not certain yet whether it’ll be permanent, as everything depends on the outcome of the formal investigation of the Tariff Commission. In case they find it unnecessary, the imposed amount will be returned to customers. 

Again, there is no price increase yet for MG vehicles hence this SRP below still applies.

No Price Increase For MG Philippines Until May 15, 2021
SRP of MG vehicles, only until May 15, 2021.

 

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button