TAX TALKS: Are Jeepneys considered Automobiles?

In Wikipedia, an automobile is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor. Most definitions of the term specify that automobiles are designed to run primarily on roads, to have seating for one to eight people, to typically have four wheels, and to be constructed principally for the transport of people rather than goods.

With the above definition, No doubt that Jeepney is an automobile. Jeepneys are everywhere in Manila - all shapes, sizes and colour configurations. It is the most popular means of public transportation in the Philippines particularly in the cities and towns. In fact, jeepney is the most efficient and cheapest mode of transportation in big cities including Metro Manila and Cebu, and for long distance destinations in the provinces.

So why am I asking whether the jeepney is considered an automobile?

Well, under Republic Act No. 9224 which was approved into law last August 29, 2003, Jeep/jeepney/jeepney substitutes are not considered automobile for the purpose of excise tax.

Under the Act, there shall be levied, assessed and collected an ad valorem tax on automobiles based on the manufacturer's or importer's selling price, net of excise and value-added taxes. As used in the Act, Automobile shall mean any four (4) or more wheeled motor vehicle regardless of seating capacity, which is propelled by gasoline, diesel, electricity or any other motive power: provided, that for purposes of this Act, buses, trucks, cargo vans, jeeps/jeepneys/jeepney substitutes, single cab chassis, and special-purpose vehicles shall not be considered as automobiles.

Thus, "Philippine jeep or jeepney" as defined in the Act as the jitney type locally designed and manufactured generally from surplus parts and components as well as jeepney substitutes that are manufactured from brand-new single cab chassis or cowl chassis and locally customized rear body that has continuous sideway row seats with open rear door and without retractable glass windows are not considered automobiles. And no ad valorem tax can be levied or collected.

Comments

PROPERTY POINT: Salvage Zones Utilization

Client wants to know if it can utilize an area constituting a salvage zone. Under Article 51 of the Presidential Decree No. 1067 , otherwise known as “ The Water Code of the Philippines ”, Salvage Zone is defined as “the zone of three (3) meters in urban areas, twenty (20) meters in agricultural areas and forty (40) meters in forest areas, along their margins, subject to the easement of public use in the interest of recreation, navigation, flotage, fishing and salvage. No person shall be allowed to stay in this zone longer than what is necessary for recreation, navigation, floatage, fishing or salvage or to build structures of any kind ”. The Philippine Ports Authority has jurisdiction over all shorelines or salvage zones. It cannot, however, grant an exemption for the individual personal use of the shoreline. Based on our representation with the Department of Environment and Natural Resources (DENR ), we learned that the available option is for client to file a Foreshore L

PROPERTY POINT: CONSULTA

A certain Register of Deeds denied the registration of the Deed of Absolute Sale executed by a corporation sole on the ground that “Court Approval is necessary since the Vendor being a corporation sole pursuant to Section 113 of Batas Pambansa Blg. 68 , the Corporation Code of the Philippines .” Pursuant to Section 117 of Presidential Decree No. 1529 , otherwise known as the Property Registration Decree , we elevate the matter to Land Registration Authority (LRA) by way of consulta . BASIS OF CONSULTA: Section 117 of the Property Registration Decree reads – Section 117. Procedure. When the Register of Deeds is in doubt with regard to the proper step to be taken or memorandum to be made in pursuance of any deed, mortgage or other instrument presented to him for registration, or where any party in interest does not agree with the action taken by the Register of Deeds with reference to any such instrument, the question shall be submitted to the Commissioner of Land Registr

NULLITY OF MARRIAGE: Lack of Marriage License Due To False Affidavit of Cohabitation

Interfering In-Laws Caused the Marriage Breakdown @Alain Atienza Tagpuno This petition involves a Declaration of Nullity of Marriage between Petitioner J and Respondent L on the ground t hat the marriage was solemnized without a marriage license, anchored on the falsity of the period of five (5) consecutive years of cohabitation stated in the Affidavit of cohabitation. FACTUAL SCENARIO: J, is a cameraman for TV shows that air over PTV 4, while L was working as the head writer for the same TV shows. D uring their initial meeting, J found L to be friendly, kind and intelligent, being a graduate of Mass Communications from the Ateneo de Manila University. As J and L always worked together on the same production, their mutual attraction for each other grew. With constant teasing from M, their Production Manager, and co-workers, J and L became sweethearts sometime in the latter part of 2001. Sometime in April 2003, while J , L and M

Lawyering's Ins and Outs

Search This Blog