BIR Ruling

February 26, 1969 Muller & Phipps (Manila) Ltd. Corner Pioneer & Reliance Sts. Mandaluyong, Rizal 40316 Attention: Mr . R . P . Caes Secretary & Manager, Staff Accounting S i r : This refers to your letter dated February 6, 1969, requesting exemption from the payment of specific tax levied on playing cards. It is represented that your company's cigarette supplier, R. J. Reynolds Tobacco Co. of North Carolina, U.S.A., is planning to send you playing cards for advertising and sales promotion of Winston, Salem and Camel Cigarettes; that from the sample submitted, each card shows on one face the basic numbers letters, and symbols of ordinary playing cards and on the other face, the picture of the product to be promoted together with a brief promotional message regarding the product; and that these cards will not be for resale but are to be distributed to your customers free of charge. In reply, I have the honor to inform you that the playing cards in question being in complete decks are subject to the specific tax imposed in Section 147 of the Tax Code, as amended by Republic Act No. 4907. The said law imposes a tax of Three (P3.00) pesos on each pack of cards, regardless of the size thereof, containing not more than sixty cards and a proportionate additional tax on the cards in excess of sixty, provided, however, that the maximum amount collected on one pack shall not exceed Seven (P7.00) Pesos. The law is explicit in that it does not make a distinction as to whether the playing cards subject to the aforementioned tax are to be for sale or not. In view hereof, your request for exemption from the payment of specific tax on playing cards is hereby denied. cdtech Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue