Rate of Percentage Tax Applicable to Manufactured Construction Materials

May 27, 1986 BIR RULING NO. 065-86 165 000-00 065-86 Gentlemen : This refers to your letter dated January 10, 1986 requesting a ruling as to the rate of percentage tax applicable to your manufactured construction materials. It is represented that you are a domestic corporation engaged in the manufacture of construction materials such as soldering lead, lead washers, lead wire fasteners, lead head nails all used as roofing nails, lead sinker used for fishing, lead sheet, lead ferrule, lead p. trap, linotype metal, babbitt metal, G.I. umbrella nail, G.I. roofing nails and G.I. revets. In reply, please be informed that the following construction materials, namely: soldering lead, lead washers, lead wire fastener, lead head nails, lead sheet, lead ferrule, G.I. umbrella nail, G.I. roofing nail, copper nails, and G.I. revets are classified as essential articles subject to the 10% sales tax based on the gross selling price thereof pursuant to Section 165(a)(3)(j) of the Tax Code, as amended by P.D. No. 2031. However, lead sinker, lead p. trap, linotype metal and babbitt metal are considered as ordinary articles subject to the 20% sales tax under Section 165(A)(2) of the same Code, as amended. cdta Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner