SUSPENDING THE IMPLEMENTING RULES AND GUIDELINES PERTAINING TO THE TAX-FREE CAR IMPORTATIONS OF PRA ENROLLEES

WHEREAS, the tax-free importation of motor vehicles
by enrollees in the PRA program has become a controversial issue and
serious problem that tend to tarnish or threaten the integrity of the
Government’s foreign retiree program, which has been accused of
providing an unwitting loop-hole for the technical smuggling of
high-priced cars;

“WHEREAS, to protect the integrity of the PRA
program, which is scoring successful inroads into the foreign retirees
market, particularly among group investors, the Board deems it
imperative to nip in the bud any schemes and conspiracies to abuse and
misuse the tax-exemption privilege on car importations by PRA enrollees,
by suspending for sometime the implementation of such tax-exemption
privilege;

“WHEREAS, tax-free car importation is treated under the particular provisions of the PRA charter (Executive Order No. 1037) as a special privilege whose implementation is vested upon the Board through appropriate rules and regulations —

“RESOLVED, That all rules and guidelines of the
Philippine Retirement Authority pertaining to the implementation of the
tax-exemption privilege in the importation or bringing in of cars by
retiree residents enrolled in the PRA Program are SUSPENDED, the
suspension to be effective with respect to all enrollees whose Special Retiree Resident Visas are approved/granted after July 11, 1989, until such time that the Board decides to lift the suspension;

“RESOLVED, FURTHER: That the eventual lifting of the
suspension of the operational effectivity of the aforesaid implementing
rules and regulations shall not in any way serve as a reason or basis
for applying the tax-exemption privilege with respect to motor vehicles
imported or brought in tax-paid by PRA enrollees during the aforesaid
suspension;

“RESOLVED, FINALLY: That Management shall continue its monitoring program with respect to the motor vehicles already brought in tax-free by retiree residents.

“APPROVED.”

Adopted: 22 Nov. 1990

(SGD.) ATTY. ROMEO T. TESTON
Corporate Secretary