BIR Ruling

November 29, 1972 The Philippine Band of Mercy, Inc. 22 East Avenue, Quezon City Attention: Mr . Pablo B . Rubio Executive Director Gentlemen : This refers to your letter dated October 30, 1972 requesting exemption from the payment of sales tax on the purchase of a motor vehicle. It is represented that the Philippine Band of Mercy, Inc. is a private non-profit charitable organization established to help in the government effort to rehabilitate the indigent physically handicapped; that support to the organization comes in the form of financial assistance from the Philippine Charity Sweepstakes Office, the Community Chest and the membership dues and donations from benevolent individuals and organizations; that in the course of its nation-wide work, it has to maintain a convalescent home for its provincial patients and a transportation equipment which it used to carry patients to and from the various hospitals for treatment and/or check up; and that your present transportation equipment which you acquired in 1965 is becoming costly to maintain, hence, your desire to buy a new one. In reply, I regret to inform you that your request cannot be granted for lack of legal basis. The sales tax due on the motor vehicle to be purchased by that organization is the direct liability of the manufacturer thereof and not by that organization. aisadc Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue