BIR Ruling

April 28, 1970 Mr. Honesto O. Francisco Director Department of Rural Banks Central Bank of the Philippines Manila S i r : This refers to your letter of even date requesting information as to whether or not Sections 130 and 131 of the Charter of the Central Bank (Republic Act No. 265) which, among others, exempt the Central Bank from the payment of taxes on its importation of motor vehicles for its own use has been repealed by Section 184(a) of the Tax Code, as amended by Republic Act No. 6110. In reply, I have the honor to inform you that the amendment which states "The provision of existing general and special laws to the contrary notwithstanding, there shall be no exemption from the tax in this subsection" effected by Republic Act. No. 6110 to subsection (a) of Section 184 of the Tax Code specifically refers to the tax imposed in said subsection which, as can be gleaned from the provisions thereof and the 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 amended, the logical conclusion is that the exemption from the compensating tax granted by Republic Act No. 265 to the Central Bank in respect of its importation of motor vehicles for its own use and not for sale, has not been withdrawn or revoked. Such being the case, the proposed importation of the Central Bank of motor vehicles for its own use is exempt from the compensating tax in accordance with Section 131 of Republic Act No. 265. cdt Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue