List of Non-Essential Items Subject to 20% Excise Tax and/or VAT

June 6, 1988 BIR RULING NO. 239-88 100 150 000-00 239-88 Gentlemen : In reply to your letter dated March 18, 1988, requesting a list of non-essential items subject to 20% excise tax and/or value-added tax, please be informed as follows: 1.) Those subject to 20% Excise Tax: a. All goods commonly or commercially known as jewelry, whether real or imitation, pearls, precious and semi-precious stones and imitations thereof; goods made of or ornamented, mounted or fitted with, precious metals or imitations thereof or ivory (not including surgical and dental instruments, silver-plated wares, frames or mountings for spectacles or eye-glasses, and dental gold or gold alloys and other precious metals used in filling, mounting or fitting of the teeth); opera glasses and lorgnettes. b. Perfumes and toilet waters c. Yachts and other vessels intended for pleasure or sports (Sec. 150, Tax Code, as amended by Executive Order No. 273) The aforesaid excise tax is in addition to the value-added tax. (Sec. 126, Tax Code) 2.) Except the above-listed articles, all other articles, classified as non-essentials under the sales tax provisions of the Tax Code, before the VAT law, are subject to the value-added tax only. cdt Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner