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RA 1511 Section 2

RA 1511 Section 2

Section 2

SEC. 2. Section one hundred ninety of Commonwealth Act Numbered Four hundred sixty-six, otherwise known as the National Internal Revenue Code, as amended, is hereby further amended by adding a new paragraph thereto, which provides as follows: "In case luxury articles brought or imported into the Philippines tax-free by persons, entities or agencies exempt from tax are subsequently sold or transferred in the Philippines to non-exempt private persons or entities, the sale or transfer shall be subject to compensating tax. The tax shall be based on the market value of the article, and payable by the purchaser or transferee within thirty days from the date of such sale or transfer and, if not paid during such period, the same shall be increased by twenty-five per centum, the increment to be a part of the tax. The tax due on such articles shall constitute a lien on the article itself superior to all other charges or liens when in the hands of a possessor who acquired the same with knowledge, actual or constructive, that it was admitted into the Philippines tax-free, for five years from the date such articles are purchased from the said tax-exempt persons, entities, or agencies. If the lien cannot be enforced, then the original vendor shall pay the tax."

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Other provisions in RA 1511

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of July 4, 2026

CitationRA 1511 Section 2 (LawPlayer, data as of July 4, 2026)

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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