BIR Ruling

March 19, 1970 Apollo Brokerage Corp. Rm. 401 Arnel Bldg., 4th Floor 435 Juan Luna St. Manila S i r : This refers to your letter dated January 23, 1970 stating the following: "We are aware that imported mahjong sets are assessed a mark-up of 100% and an advanced sales tax of 70% in accordance with the Omnibus Tax Code. May we know the correct assessment or the taxes to be paid for locally made mahjong sets under the following conditions: 1) All the raw materials are locally procured; 2) A portion of the raw materials are imported, e. g. 50%." In reply, I have the honor to inform you that locally manufactured mahjong sets are subject to the 70% sales tax imposed in Section 184(d) of the Tax Code as amended by Republic Act No. 6110. Under Section 184 of the Tax Code as amended by Republic Act No. 6110, the sales tax due on locally manufactured mahjong sets is based on the gross selling price thereof less the total cost of raw materials, as duly established, which have been subjected to the same rate of tax as the finished article. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue