BIR Ruling

February 9, 1970 MEMORANDUM FOR: The Secretary This refers to the question of whether the new provision added by Republic Act No. 6110 to subsection (a) of Section 184 of the Tax Code has removed the tax exemption privilege granted by special laws to certain persons entities and agencies with respect to automobiles imported, brought in, or received from abroad and intended for their use. casia The law in question is hereunder quoted: SEC. 184. Percentage tax on sales of jewelry, automobiles, toilet preparations and others . . . . xxx xxx xxx xxx xxx xxx "a. . . . xxx xxx xxx "The provision of existing general and special laws to the contrary notwithstanding, there shall be no exemption from the tax in this subsection ." (Emphasis supplied) It is noted that (1) The amendatory provision is located in, and made part of Section 184(a); and (2) Said provision specifically refers to the tax imposed in Subsection (a) which, as can be gleaned from the provisions thereof and the main provisions of Section 184, is a tax on every original sale, barter and exchange of automobile. Considering that what Republic Act. No. 6110 amended is subsection (a) of Section 184 of the Tax Code; that the amendment specifically refers to the tax imposed in subsection (a), which is the sales tax on every sale, barter or exchange of automobile; and, considering further that Section 190 of the Tax Code has not been similarly amended, the logical conclusion is that the exemption from the compensating tax granted by law to certain persons, entities and agencies in respect of their importation of automobiles for their use and not for sale, has not been withdrawn or revoked. It was thought at first that the abovequoted provision could be interpreted or construed to cover also the compensating tax imposed by Section 190 of the Tax Code. However, after analysis of the amendatory provision, and considering the rules of statutory interpretation and construction, we find no basis for reading the said amendment into said section. "The most common rule of statutory interpretation is the rule that a statute clear and unambiguous on its face need not and cannot be interpreted by a court and only those statutes which are ambiguous and of doubtful meaning are subject to the process of statutory interpretation." (Emphasis supplied; Sutherland Statutory Construction, 3rd Ed. Vol. 2., p. 316.) "Consequently, when construing a statute, the reason for its enactment should be kept in mind, and the statute should be construed with reference to its intended scope and purpose. The Court should seek to carry out this purpose rather than to defeat it. Of course, if the language is unambiguous and the statute's meaning is clear, the statute must be accorded the expressed meaning without deviation , since any departure would constitute an invasion of the province of the legislature by the judiciary. And even where the statute is ambiguous, considerable caution should be exercise by the court least its opinion be substituted for the intent of the legislature. In other words, the court must not be ascribe to the lawmakers a purpose not actually that of the legislature. To do so would result in ascribing to the statute a different intent than that of the legislature." (Emphasis supplied; Crawford Statutory Construction, p. 249.) cdta It may stated in this connection that if it is the intention to tax all automobiles imported, received or brought in from abroad by tax-exempt persons, it is necessary that Section 190 of the Tax Code be amended by adding thereto the same provision as that added to Section 184(a) by Republic Act No. 6110. In view thereof, it is considered opinion of this Office that the tax exemption privileges granted to those who import, receive or bring in from abroad automobiles for their use and not for resale are not affected by the amendment of Section 184(a) of Republic Act No. 6110. However, if they sell, barter or exchange such automobiles, they shall be subject to the sales tax imposed by Section 184(a) of the Tax Code. (SGD.) MISAEL P. VERA Commissioner of Internal Revenue