Percentage tax on sales of automobiles.
Section 195
SEC. 195. Percentage tax on sales of automobiles.—There shall be levied, assessed, and collected once only on every original sale, barter, exchange, or similar transaction for nominal or valuable consideration intended to transfer ownership of, or title to, automobiles, a percentage tax, on the gross selling price or gross value in money of the automobiles so sold, bartered, exchanged, or transferred, the tax to be paid by the manufacturer or importer, determined in accordance with the following schedules; (A) For locally manufactured, automobiles—If the gross selling price does not exceed 1*20,000, the tax shall be 10% of such selling price; if it exceeds P20,000 but does not exceed F25,000, the tax shall be P2,000 plus 15% of the excess over F20)000; If it exceeds P25,00.0 but does not exceed P30,000, the tax shall be F2,750 plus 25% of the excess over P25,000; If it exceeds P30,000 but does not exceed F35,000, the tax shall be F4,000 plus 35% of the excess over P30,000'; If it exceeds P35,000; but does not exceed P40'?000, the tax shall be P5,750i plus 50% of the excess over f 35,000; and If it exceeds F40,000, the tax shall be f8,250 plus 70% of the excess over P40,000. (B) For imported automobiles—if the landed cost plus mark-up as established by section 193 (b) of this Code does not exceed P20,000, the tax shall be 10;0:% of such landed cost plus mark-up; If it exceeds F20,000' but does not exceed P25,000, the tax shall be (20,00,0 plus 125% of the excess over P20,000; If it exceeds P25,000 but does not exceed P30,000, the tax shall be P26,250 plus 150% of the excess over P25,000; If it exceeds P30,000 but does not exceed P35,00,0, the tax shall be P33,750 plus 175% of the excess over P30,000; If it exceeds P35,000, the tax shall be P42,500 plus 200% of the excess over P35,000. Any percentage tax paid under sections 194, 195, 196, 197, 198, 199 and 203, during1 the preceding taxable quarter on domestically manufactured or produced, or imported raw materials, parts, accessories or other articles forming part of the finished product or will form part thereof shall be credited against the gross sales tax due on the finished product. In case the tax paid on the raw materials, accessories or other articles exceeds the gross sales tax due on the finished products, the excess shall be credited against the gross sales tax due on the finished products for the succeeding taxable quarter: Provided, however, That the amount of the tax on these raw materials, parts, accessories or other articles are indicated as a separate item in the invoices. A sale of an automobile shall, for the purpose of this section, be considered to be a sale of the chassis and of the body together with parts and accessories with which the same are usually equipped: Provided, however, That parts and accessories of automobiles imported as completely knocked down parts by assemblers registered under the progressive car manufacturing program of the Board of Investments, or as replacement as well as locally manufactured parts and accessories for the assembly of automobiles shall be subject to tax under Section 199. The term 'automobiles" used herein shall not include motor vehicles classified as trucks and jeeps.