Sales Tax on the Purchase of a Legally Manufactured 1980 Ford Econovan

April 21, 1981 BIR RULING NO. 075-81 195 031-79 075-81 The British Embassy Electra House 115-117 Esteban Street Legaspi Village Makati, Metro Manila Attention: Mr . T . Dowse Third Secretary Gentlemen : This refers to your letter dated February 25, 1981 requesting exemption from the payment of sales tax on the purchase of a legally manufactured 1980 Ford Econovan for the official use of that Embassy. In reply, I have the honor to inform you of the ruling of the Minister of Finance of September 5, 1974 extending to foreign embassies, the privilege given to "Balikbayan" and persons coming for the first time to settle 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 vehicle is brand new and registered under the Progressive Car Manufacturing Program; and (2) that the purchase should be made in U.S. or other acceptable foreign currencies. In this connection, it may be stated that the 1980 Ford Econovan which you intend to purchase for the official use of that Embassy is not among the vehicles being manufactured by Ford Philippines registered under the Progressive Car Manufacturing Program. Accordingly, this Office cannot allow you to purchase the said vehicle without the payment of the corresponding sales tax due thereon. cdtech Very truly yours, RUBEN B. ANCHETA Acting Commissioner ANNEX A September 5, 1974 The Honorable The Secretary of Foreign Affairs M a n i l a S i r : We are pleased to inform that the privilege given to "Balikbayan" and persons coming for the first time to settle in the Philippines under Presidential Decree No. 439, to purchase vehicles without the payment of taxes from the participants in the Progressive Car Manufacturing Program (PCMP) of the government, is hereby extended to foreign embassies, the various international organizations, particularly the specialized agencies of the United Nations, the US Military Bases and to their respective foreign personnel entitled to tax exemption. This privilege is, however, subject to the same restrictions enumerated in the aforementioned decree as may be applicable in the instant case, more particularly the following: 1. That only one (1) brand new vehicle registered under the Progressive Car Manufacturing Program may be allowed; 2. That the purchases are made in the United States currency or other acceptable foreign currencies; 3. That in case of personnel, the privilege shall be availed of only once during his/her assignment in the Philippines with a right of replacement not oftener than once every three years. Application for the availment of this privilege shall be made to this Office through that Department. It will be highly appreciated if this information will be highly disseminated to all concerned. Very truly yours, CESAR VIRATA Secretary