BIR Ruling

March 21, 1967 2nd Indorsement Respectfully returned to the Honorable, the Secretary of Finance, Manila, thru the Commissioner of Customs, Manila, the within memorandum and its attachments, from the Embassy of Switzerland, proposing the reduction of sales tax to not more than 20% to 30% of the c.i.f. value of watches imported from Switzerland in order to minimize, if not to eliminate smuggling of the said watches. cdt It should be noted that the landed cost of is the standard basis of the advance sales tax which applies equally to all kinds of articles subject thereto. The establishment of a different basis (c.i.f.) value as proposed) for Swiss watches and at a lower rate of tax would result in special tax treatment of Swiss watches. The proposition, it is believed, is not sound as it is violative of the rule of uniformity in taxation. This Office does not, therefore, favor the adoption of the proposition. (SGD.) MISAEL P. VERA Commissioner of Internal Revenue