BIR Ruling No. 077-64

December 23, 1964 BIR RULING NO. 077-64 The General Manager Philippine National Railways (formerly Manila Railroad Company) Claro M. Recto Avenue Manila S i r : Reference is made to your letter dated August 14, 1964 requesting reconsideration of our ruling to the effect that the Philippine National Railways is subject to the specific tax on motor gasoline supplied by different oil companies. You contend that the corporation is exempt from payment of the specific tax on said gasoline, pursuant to Section 12 of Republic Act No. 4156, quoted in part, as follows: llcd "Section 12. Exemption from taxes, duties and port charges . The corporation is hereby exempt from payment of all taxes of every name and nature municipal, city, provincial, or national upon its capital stock, franchises, right of way, earnings, and all other property owned or operated by it and all duties on all railways materials, supplies and equipment imported in the Philippines for and/or by the said Corporation and this exemption shall extend to port charges upon vessels whose entire cargo consists of materials for the construction of equipment of the Corporation and to such proportion of the prescribed port charges on other vessels as the tonnage of materials for such constructions or equipment may bear to the tonnage of the entire cargo of the vessel." In answer thereto, I have the honor to inform you that the abovequoted provision of law contemplates only of taxes to which the Philippine National Railways is directly liable. Considering that the said corporation is not the proper party directly liable to the specific tax due on the motor gasoline, but the manufacturer or producer thereof, no exemption will lie in favor of the corporation. Accordingly, your request for reconsideration has to be as it hereby denied. prcd Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue