EXECUTIVE ORDER NO. 838 October 20, 1982
REVISING THE PERCENTAGE TAX ON SALES OF AUTOMOBILES UNDER SECTION 195(A) OF THE NATIONAL INTERNAL REVENUE CODE OF 1977, AS AMENDED
WHEREAS, the present rate structure of sales tax on automobiles is graduated and based on gross selling price;
WHEREAS, inflation has pushed up the prices of cars and for this reason economy cars are now consequently taxed at higher rates;
WHEREAS, car manufacturers claimed that this has caused a decline in their sales volume which, in effect, is one of the reasons for the present distressed condition of the automotive industry; and
WHEREAS, restructuring of the tax base and tax rates of the sales tax on automobiles will provide relief to both the prospective car buyers and the automotive industry.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution and by Section 290-B of the National Internal Revenue Code of 1977, as amended, do hereby order as follows:
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Executive Orders
Revising the Percentage Tax on Sales of Automobiles Under Section 195(A) of the National Internal Revenue Code of 1977, as Amended
Executive Order No. 838
Revising the Percentage Tax on Sales of Automobiles Under Section 195(A) of the National Internal Revenue Code of 1977, as Amended
- Restructures the tax base and rates for sales tax on automobiles to provide relief to car buyers and the automotive industry (Preamble)
- Amends Section 195(A) of the National Internal Revenue Code to revise the percentage tax rates on sales of automobiles based on suggested retail/list price or actual retail price, whichever is higher (Section 1)
• For locally manufactured automobiles:
• Not over ₱65,000 - 15% tax rate (Section 1(a))
• Over ₱65,000 but not over ₱85,000 - 25% tax rate (Section 1(a))
• Over ₱85,000 but not over ₱120,000 - 35% tax rate (Section 1(a))
• Over ₱120,000 - 45% tax rate (Section 1(a))
- Authorizes the Minister of Finance, upon recommendation of the Commissioner of Internal Revenue, to promulgate necessary rules and regulations for implementation (Section 2)
- Provides for immediate effectivity of the Executive Order (Section 3)
- Restructures the tax base and rates for sales tax on automobiles to provide relief to car buyers and the automotive industry (Preamble)
- Amends Section 195(A) of the National Internal Revenue Code to revise the percentage tax rates on sales of automobiles based on suggested retail/list price or actual retail price, whichever is higher (Section 1)
• For locally manufactured automobiles:
• Not over ₱65,000 - 15% tax rate (Section 1(a))
• Over ₱65,000 but not over ₱85,000 - 25% tax rate (Section 1(a))
• Over ₱85,000 but not over ₱120,000 - 35% tax rate (Section 1(a))
• Over ₱120,000 - 45% tax rate (Section 1(a))
- Authorizes the Minister of Finance, upon recommendation of the Commissioner of Internal Revenue, to promulgate necessary rules and regulations for implementation (Section 2)
- Provides for immediate effectivity of the Executive Order (Section 3)