Bed Sheets are, for Sales Tax Purposes, Considered as Ordinary Articles Subject to 20% Sales Tax

June 5, 1987 BIR RULING NO. 155-87 163 (4) 000-00 155-87 Gentlemen : This refers to your letter dated November 27, 1986 requesting information whether bed sheets (wholly or in chief value of cotton) fall under Section 163 (1)(L) of the Tax Code, as amended by Executive Order No. 36, which reads as follows: "SEC. 163. Percentage Tax on Original Sales of Articles There shall be levied, assessed and collected, once only on every original sale, barter, exchange, or similar transaction for nominal or valuable consideration intended to transfer ownership of, or title to, the articles herein below enumerated a tax based on the gross selling price or gross value in money of the articles so sold, bartered, exchanged, or transferred, such tax to be paid by the manufacturer, producer or importers: (I) Thirty per cent (30%) on the following non-essential articles: (L) Textiles wholly or in chief value of silk, wool, or linen, nylon or other synthetic and/or chemical fabrics not intended for clothing; wool and silk hats; and furs and manufacturers thereof." In reply, please be informed that your query is answered in the negative. It is noted that the above-quoted provision does not include "wholly or in chief value of cotton." Such being the case, since said bed sheets are neither considered textiles under subsection (1) of Section 163 nor as essential articles and agricultural products under subsections (2) and (3) respectively, they are for sales tax purposes considered as ordinary articles subject to the 20% sales tax under Subsection (4). Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner