Definition and Classification of Vehicles
"Automobile" means any motor vehicle with four or more wheels powered by gasoline, diesel, electricity, or other power sources.
Excluded from the definition of automobiles:
- Buses
- Trucks
- Cargo vans
- Jeeps/jeepneys/jeepney substitutes
- Single cab chassis
- Special-purpose vehicles
Specific definitions:
- Truck/Cargo Van: Vehicle designed exclusively for goods transport; pick-ups excluded.
- Jeep/Jeepney: Locally designed jeep-type vehicles often made from surplus parts; includes substitutes built from new chassis with specific seating and body features.
- Bus: Vehicles with gross vehicle weight of 4 tons or more, designed for mass/public transport.
- Single cab chassis: Vehicles with one row of seats and up to two doors.
- Special-purpose vehicles: Vehicles designed for tasks such as cement mixing, firefighting, medical transport, heavy industry; excludes recreational off-road vehicles.
Taxation of Imported Automobiles and Freeport Zone Exemption
- For imported automobiles not intended for sale, excise tax is based on total landed value, which includes transaction value, customs duty, and other charges.
- Automobiles used exclusively within freeport zones are exempt from excise tax.
Rulemaking Authority and Implementation
- The Secretary of Finance, upon the Internal Revenue Commissioner’s recommendation, must issue implementing rules and regulations within 30 days after the law's approval.
Legal Provisions on Constitutionality and Related Laws
- If any part of the Act is declared unconstitutional or invalid, remaining provisions stay effective.
- Laws, decrees, executive orders, or related issuances inconsistent with this Act are repealed, amended, or modified.
Effectivity
- The Act takes effect 15 days after publication of the approved implementing rules and regulations.