Whether an Imported Toyota Land Cruiser, Model 1995, With an Engine Displacement Capacity of 4525cc (Gasoline-Fed) is Not Taxable as an Automobile; Hence, Not Subject to Ad-Valorem Tax under Section 149 of the Tax Code, as amended

April 19, 1995 BIR RULING NO. 073-95 149 116-94 073-95 Hon. Dominador G. Nazareno, Jr. House of Representatives Diliman, Quezon City S i r : This refers to your letter dated March 29, 1995, in effect, requesting confirmation of BIR Unnumbered Ruling No. 063-95 dated February 14, 1995 stating that an imported Toyota Land Cruiser, Model 1995, with an engine displacement capacity of 4525cc (gasoline-fed) is not taxable as an automobile; hence, not subject to ad-valorem tax under Section 149 of the Tax Code, as amended. cdta The records show that the said vehicle covered by B/L No. APLU006624087, with Registry Number APL-048 arrived in Manila last December 5, 1994 via vessel "President Arthur"; that all the required documents for the subject shipment, including Entry No. 178066-94, have already been filed and that the corresponding duties and taxes (obviously value-added tax) were paid; and that a gate pass for release of the shipment from Customs custody has already been issued but the release did not materialize as the same was intercepted and detained by the personnel of the office of the Customs Commissioner for alleged non-payment of Ad-Valorem tax prescribed under Section 149 of the National Internal Revenue Code, as amended. That based on the foregoing facts, this Office, in the subject Unnumbered Ruling No. 063-95 dated February 14, 1995, ruled that the above-described imported utility vehicle is not taxable as automobile; hence, not subject to ad-valorem tax under Section 149 of the Tax Code, as amended. In reply, please be informed that Executive Order No. 90 in relation to Department of Finance Order No. 34-93 prescribed various rates of compromise settlement for imported utility vehicle with engine displacement from 2000cc to 4000cc (if gasoline-fed) and 2500cc to 4500cc (if diesel-fed), which were released from Customs custody without having been subjected to ad-valorem tax. This Office has previously ruled (BIR Ruling No. 377-93) that with respect to imported utility vehicles bearing the aforesaid specification and for year Model 1993 and subsequent years, the ad-valorem tax under Section 149 of the Tax Code, as amended, shall be applied at the full rate. Consequently, imported utility vehicles with engine displacement exceeding 4000cc (if gasoline-fed) shall be exempt from ad-valorem tax under Section 149 of the Tax Code, as amended. (BIR Ruling No. 116-94) Such being the case, Unnumbered BIR Ruling No. 063-95 dated February 14, 1995 issued by Assistant Commissioner Alicia P. Clemeno, Legal Service, stating that Mr. John A. Stahley's importation of one (1) unit 1995 Toyota Land Cruiser with engine displacement of 4525cc is not subject to ad-valorem tax is hereby confirmed. cdti Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue