BIR Ruling No. 170-99

October 26, 1999 BIR RULING NO. 170-99 RR 14-97-000-00-170-99 World Star Philippines No. 1 Perimeter Road (2nd Flr.) Olongapo City 2200 Attention: J . E . Banning President Gentlemen : This refers to your letter dated October 5, 1998 stating that you manufacture and assemble utility "pick up type" vehicles with seating capacity of more than ten (10) passengers. Based on the foregoing, you now in effect request for a ruling that you be exempted from excise tax. LibLex In reply, please be informed that an ad valorem tax shall be imposed on the production, assembly or importation of conventional automobiles, including LCVs or utility vehicles classified as automobiles. Section 2 of Revenue Regulations No. 14-97 defines "automobile" as follows: ". . . a four (4) or more wheeled vehicle other than trucks as defined under R.A. 4136 and R.A. 1188 which is propelled by gasoline, diesel, or any other motive power and specially designed for the transport of persons and not used primarily for carrying of freight and merchandise: Provided, That its seating capacity shall be less than ten (10) adult passengers including the driver : Provided, further, That the sizes of the passenger seats shall not be less than 35 centimeters wide and 60 centimeters long. It shall include utility or light commercial vehicles designed for passenger use with seating capacity of less than ten (10) adult passengers , including the driver ." (Emphasis supplied) R.R. 14-97 enumerated four or more wheeled vehicles that are exempt from ad valorem tax as follows: "a. Public passenger transport type vehicles with seating capacity of ten (10) or more persons, including the driver. "b. Vehicles classified as light trucks designed primarily for transport of cargoes such as delivery vans, pick-ups, etc. regardless of seating capacity. "c. Special purpose vehicles." Such being the case, your request is hereby granted inasmuch as the vehicles you manufacture and assemble have seating capacity of more than ten (10) passengers. LexLib This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue