Section 24
SEC. 24. Section 195 of the National Internal Revenue Code is hereby renumbered and amended to read as follows: “SEC. 164. 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 based on the suggested retail or list price or actual retail price, whichever is higher, such tax to be paid by the manufacturer or importer, determined in accordance with the following schedule: Engine Displacement Tax Rate Gasoline Diesel 30% Up to 1200 cc Up to 1850 cc 35% 1201 to 1600 cc 1851 to 2050 cc 40% 1601 to 1800 cc 2051 to 2250 cc 50% 1801 cc or over 2251 cc or over “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 their replacements; and imported and locally manufactured spare parts and accessories with which automobiles are usually equipped shall be subject to the tax under Section 165[A] [2]. “For purposes of this section, the term “suggested retail or list price” shall mean the price at which locally manufactured automobiles are offered for sale to the public, as fixed by the assemblers, which shall in no case be less than 15% over and above the selling price of the assembler to the dealer; or not less than 30% over and above the manufacturing cost, in case of direct sales to the public by the assemblers. “Automobile assemblers shall submit to the Commissioner of Internal Revenue a sworn statement of the “suggested retail or list price” of each particulars brand, make or model of their products before the same is offered for sale; and periodically thereafter a notification of any projected change thereof. The assemblers are also required to cause the publication of their respective “suggested retail or list price” or any change thereof in a newspaper of general publication. “A sale of an automobile shall, for purposes 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 including other parts and accessories permanently attached thereto at the time of the original sale. The term “automobiles” used herein shall not include motor vehicles classified as trucks, jeeps and utility vehicles.”