BIR Ruling

January 28, 1969 Mr. Kim Young Joon Korea Trade Promotion Corporation 806 Sikatuna Building Ayala Avenue, Makati, Rizal S i r : In reply to your letter dated January 2, 1969, requesting information as to the rate of taxes imposed on certain locally manufactured commodities, I have the honor to inform you as follows: Cotton yarn, steel plates, flat glass, cement, newsprint, cellophane, cold rolled steel, electric wire, bearings tricycle, acrylic fiber, nylon yarn, viscose rayon yarn, gunpowder and dynamite are all subject to the 7% sales tax imposed in Section 186 of the Tax Code. Electric fans (except those specially adopted for industrial use) are subject to 30% sales tax pursuant to Section 185 of the same Code. Locally manufactured refrigerators are now subject to three rates of sales tax under Sections 185-A of the said Code which are as follows: (1) If it comes under the classification of integrated manufactured product, 7%; (2) If it comes under the classification of non-integrated manufactured product, 15%; and (3) If it does not come under the classification of either an integrated or non-integrated manufactured product, 30%. Television sets are generally subject to the 30% sales tax under Section 185-B of the Tax Code. However, locally manufactured television sets as defined in Section 185-B of the Tax Code are subject to only 7% sales tax. Automobile passenger cars are subject to 50% sales tax if the selling price is P7,000.00 or below; 75% if the selling price exceeds P7,000.00 but not exceeding P10,000.00; and 100% if the selling price is over P10,000.00 pursuant to Section 184(a) of the Tax Code as amended by Republic Act No. 1612. Two wheeled motorcycles are subject to the 7% sales tax. However, motorcycles with more than two wheels may be considered as cars, hence, subject to the rate of sales tax applicable to cars. cdll Sugar is subject to 2% tax based on market value. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue