AN ACT IMPOSING A TAX ON PRIVATELY OWNED PASSENGER AUTOMOBILES

Case Overview and Summary

Summary of Republic Act No. 5448

Creation of Special Science Fund (Section 1):
- A Special Science Fund is created from the proceeds of taxes imposed in Sections 3 and 4.
- The Fund is to promote scientific and technological research and development, foster invention, and utilize scientific knowledge for national progress.
- The Fund shall be expended exclusively for programs, projects, and activities of specified science agencies, including expenses to carry out their functions and responsibilities.

Expenditure of the Fund (Section 2):
- Expenditure of the Fund shall be through appropriations made by law.
- From the effectivity date until June 30, 1969, collections shall fund unprogrammed appropriations for the science agencies from the General Fund.
- Expenditure for subsequent fiscal years shall be included in the annual General Appropriations Act.

Tax on Privately-Owned Passenger Automobiles, Motorcycles, and Scooters (Section 3):
- An additional tax is imposed on new or current models of privately-owned passenger automobiles, motorcycles, and scooters, based on their shipping or factory weight.
- The tax rates are specified for different weight ranges of passenger automobiles.
- For motorcycles and scooters, a fixed additional tax of P15.00 is imposed.
- For jeeps, a fixed additional tax of P20.00 is imposed.
- For used vehicles other than current models, the tax is reduced by 10% for each year after manufacture/assembly, but not less than 30% of the full tax.
- The additional tax shall be collected along with the registration fees under Republic Act No. 4136, with the words "Science Tax" printed on official receipts.

Science Stamp Tax (Section 4):
- In addition to the documentary stamp taxes under the National Internal Revenue Code, science stamp taxes equal to 100% of those taxes are imposed, except for tax clearance certificates.
- For tax clearance certificates, the science stamp taxes are specified for different classes of passengers.
- No science tax shall be imposed on freight tickets covering accompanied baggage of passengers on land and water carriers primarily engaged in passenger transportation.
- No science tax shall be imposed on certificates issued by notaries public or persons authorized to administer oaths.
- The science stamp tax shall be collected along with the documentary stamp tax, subject to the same penalties.

Turnover of Collections and Release of the Fund (Section 5):
- The Commissioners of Internal Revenue and Land Transportation Commission shall turn over their collections of taxes and penalties to the Treasurer of the Philippines monthly within the first ten days of the succeeding month, accruing to the Special Science Fund.
- No collections may be transferred or diverted to any other fund or expended for purposes other than those specified in the Act.
- It is the ministerial duty of the Budget Commissioner, National Treasurer, and their officers and employees to effect releases from the Fund upon order/authorization of the Chairman of the National Science Development Board, on recommendation by the agencies under the National Research Council of the Philippines.

Rules and Regulations (Section 6):
- The Secretaries of Finance and Public Works and Communications shall promulgate rules and regulations relating to the collection of taxes accruing to the Special Science Fund.
- The Chairmen of the National Science Development Board and National Research Council of the Philippines may promulgate rules and regulations for the effective implementation of the Act, including adopting an appropriate design for the science stamp.

Annual Report (Section 7):
- The Chairmen of the National Science Development Board and National Research Council of the Philippines shall each submit an annual report within 15 days from the opening of the regular session of Congress to the President and presiding officers of both Houses.
- The annual report shall include an account of the programs, projects, and detailed expenses undertaken pursuant to the Act.

Duration of the Fund (Section 8):
- The proceeds of the taxes imposed in the Act shall constitute the Fund.
- After five years from the effectivity of the Act, the taxes shall accrue to the General Fund unless otherwise provided by law.

Penal Provisions (Section 9):
- Failure or refusal to turn over tax collections within the specified period, or delaying, obstructing, or preventing the same, shall be punished with a fine not exceeding P10,000 or imprisonment not exceeding six years, or both, at the discretion of the Court.
- If the offender is a government official or employee, they shall be dismissed from service with prejudice to reinstatement and disqualification for election to any public office.
- If the offender is an alien, they shall be deported after payment of the fine, without further deportation proceedings.

Separability Clause (Section 10):
- If any part of the Act is held invalid or unconstitutional, it shall not affect other provisions or applications that can be given force and effect without the invalid or unconstitutional part.

Repealing Clause (Section 11):
- All Acts, executive orders, rules and regulations, or parts thereof, which are inconsistent with the provisions of this Act are repealed, amended, or modified accordingly.

Effectivity (Section 12):
- The Act shall take effect on January 1, 1969.