MANILA - Vehicle manufacturers are "cautious" on sales projections this year as higher taxes on cars took effect, an industry group said Friday.
There may be a "slowdown" in the first or second quarter after consumers advanced car purchases in the last months of 2017 due to an "excise tax scare," said Rommel Gutierrez, president of the Chamber of Automotive Manufacturers of the Philippines.
"We are quite cautious about our projections for the year," Gutierrez told ANC's Market Edge with Cathy Yang.
Gutierrez said there would be an "adjustment" in sales due to the new taxes, especially since the industry saw "impressive" sales that exceeded 10 percent in recent years.
"Our supply continues to come in. We have available units. It will be business as usual. It's just that we have to see how the market will actually react to this," he said.
Aside from cars, taxes on fuel and sugar-sweetened drinks were increased on Jan. 1 to offset a reduction in personal income tax rates.