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