Motor Vehicle Importations Covered by Loan Proceeds

May 24, 1990 FIRB RESOLUTION NO. 026-90 SUBJECT : Motor Vehicle Importations Covered by Loan Proceeds WHEREAS, loan arrangements to fund projects of government entities generally feature the provisions of capital equipment such as motor vehicles deemed necessary to the execution of the project; WHEREAS, motor vehicle importations covered by loan proceeds are allowed liberal entry notwithstanding government restriction thereon; WHEREAS, the actual use of these motor vehicles may go beyond the exclusive requirements of the loan-financed project, in the process creating opportunities for abuses; cdt WHEREAS, the upkeep and maintenance of imported motor vehicles represent a foreign exchange cost; WHEREAS, the provision of subsidy availment thereon would be counter productive by encouraging government entities to import there vehicle requirements instead of buying from local sources; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, That motor vehicle importations covered by loan proceeds shall not be entitled to subsidy availment under the Tax Expenditures Fund: Provided , however , That this provision shall not apply to specialized types of motor vehicles which are not anyway available locally. (SGD.) JESUS P. ESTANISLAO Secretary of Finance Chairman FIRB References : FIRB Technical Committee Meeting dated March 29, 1990 FIRB Meeting dated May 23, 1990