Request for Refund of Amount Paid as Sales Tax for Vehicle Purchased under the Progressive Car Manufacturing Program

March 22, 1984 BIR RULING NO. 064-84 195-072-83-064-84 Gentlemen : This refers to your letter dated January 13, 1983 requesting refund of P5,115.00 representing sales tax added to the invoice value of the Ford Fiera purchased by you from Mantrade Development Corporation. It appears that you have secured an authorization from the Ministry of Foreign Affairs to purchase tax-free Fiera High Side Pick-Up under the Progressive Car Manufacturing Program (PCMP). In reply, I have the honor to inform you that the ruling of the Ministry of Finance dated September 5, 1974 extending to the international organizations, among others, the privilege granted to returning Filipinos under P.D. No. 439 to purchase tax-free vehicles without payment of taxes from the participants in the PCMP is subject to the following conditions: (1) that purchased vehicle is brand new and registered under the PCMP; (2) that the purchase shall be made in the U.S. or acceptable foreign currency; and (3) that privilege shall be availed of only once during his/her assignment in the Philippines with a right of replacement not oftener than once in three years. Accordingly, since your payment of the aforesaid vehicle was made in Philippine Pesos and not in the U.S. or other acceptable foreign currency, as required in the aforesaid ruling of the Minister of Finance, the purchase thereof without payment of the sales tax due thereon cannot be allowed. For this reason, it is regretted that your request for refund cannot be granted. adc Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner