Writing Pads and Notebooks are Considered Essential Articles Subject to 10% Sales Tax

June 24, 1987 BIR RULING NO. 175-87 163 (2) (j) 017-87 175-87 Gentlemen : This refers to your letter dated April 15, 1987 requesting a ruling as to the rate of sales tax payable by your client, Hansson Paper Phils. Corporation, on its manufacture and sale of bond paper, newsprint paper and mimeographing paper. In reply, please be informed that writing pads and notebooks are considered essential articles subject to 10% sales tax pursuant to Section 163 (2)(j) of the Tax Code, as amended by Executive Order No. 36. Accordingly, all of the abovementioned articles which are used in the manufacture of grade school writing pads, notebooks and school test paper are also subject to the same rate of sales tax, i.e., 10% provided that the purchasers thereof shall certify to Hansson Paper Phils. Corporation that the same shall be used exclusively in the manufacture of writing pads, notebooks and test papers. (Section 163(2), Tax Code, as amended Section 6.11, Rev. Regs. No. 11-86). If the purchasers fail to issue the certification, Hansson Paper Phils. Corporation will be subject to 20% sales tax, pursuant to Section 163(4) of the Tax Code, as amended. atdc Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner