BIR Ruling No. 162-61

March 22, 1961 BIR RULING NO. 162-61 The President Fortunes, Inc. 2159 Taft Avenue, Manila S i r : In reply to your letter dated March 16, 1961, I have the honor to inform you as follows: cdpr Luggage, suitcases, handbags, doctor's and nurse's bag (satchel), and wallets made of any material are subject to the 30% sales tax. Brief cases, including portfolios, made of leather or imitation leather are also subject to 30% sales tax, or to the 7% sales tax if made of any other material. (Secs. 185 & 186, Tax Code.) School bags, and belts, regardless of the material of which they are made, are subject to the 7% sales tax. (Sec. 186, Tax Code). Novelties and the like are subject to either 30% or 7% sales tax depending on whether the article falls within Section 185 or Section 186 of the Tax Code. LexLib The sales tax is based on the gross selling price of the manufactured article less the total cost of the raw materials used in the manufactured thereof which were previously subjected to the same rate of tax as the finished product. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue