Condition for Registration Renewal
- No renewal of registration of taxable imported motor vehicles covered by this Order will be allowed by the Land Transportation Office (LTO) without obtaining clearances.
- Clearances must be from the Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR).
- The clearances certify that all applicable taxes, duties, and fees have been paid or settled.
Taxes and Fees Concerned
- Includes excise tax, value added tax, and other taxes, duties, and fees under the National Internal Revenue Code, as amended.
- Applies also to amounts collectible under the Customs and Tariff Code, as amended.
Joint Enforcement and Revenue Protection
- The BOC, BIR, and LTO are mandated to pursue a coordinated action plan.
- The objective is to collect unpaid taxes, duties, and fees on taxable imported motor vehicles.
- This is in response to established cases where vehicles were registered without payment, causing government revenue loss.
Compromise Payment Schedule
- BOC and BIR shall establish a uniform compromise payment plan for vehicle owners.
- The schedule fixes the compromise amounts in lieu of the total taxes, duties, and fees.
- This schedule will be formally issued via a Department Order by the Secretary of Finance.
One-time Clearance Requirement
- The requirement to obtain clearances from BOC and BIR is a one-time condition.
- Once clearance is obtained and taxes settled for the vehicle's initial registration renewal, subsequent renewals at the LTO do not require new clearances.
Rules and Regulations Implementation
- The Department of Finance and/or the LTO shall promulgate rules and regulations to carry out this Order effectively.
Effectivity
- This Order takes effect 15 days after its publication in a newspaper of general circulation.