BIR Ruling No. 072-83

April 28, 1983 BIR RULING NO. 072-83 Gentlemen : This refers to your letter dated August 20, 1982 requesting exemption from the payment of sales tax on the purchase from Mantrade Ford Manila of three locally manufactured Ford Econovan for the official use of your club. In reply, I have the honor to inform you of the ruling of the Minister of Finance dated September 5, 1974 extending to foreign embassies, the various international organizations, the U.S. Military Bases and to their respective personnel entitled to tax exemption, the privilege given to "Balikbayan" and persons coming to settle for the first time in the Philippines under P.D. No. 439 to purchase vehicles without the payment of taxes from participants in the Progressive Car Manufacturing Program (PCMP) subject to the following conditions: (1) that the purchased vehicles is brand new and registered under the Progressive Car Manufacturing Program; (2) that the purchase should be made in U.S or other acceptable foreign currencies; and (3) that the 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. In view thereof, and considering that Ford Econovan which you intend to purchase for the official use of your club is not among the vehicles being manufactured by Ford Philippines registered under the Progressive Car Manufacturing Program, this Office cannot allow you to purchase the said vehicles without the payment of the corresponding sales tax due thereon. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue