Tax Rate Imposed on Photo Chemicals Imported by Kodak Phil. Ltd.

May 13, 1958 BIR RULING NO. 283-58 3rd Indorsement Respectfully returned to the Regional Director, BIR Regional District No. 3, Manila. The principal question involved in this case is the correct rate of tax to be imposed on photo chemicals imported by Kodak Phil. Ltd. Taxpayer contends that as these photo chemicals may be used not only for photographic purposes but also for other purposes, the same are not subject to the 20% sales tax prescribed under Section 185(j) of the National Internal Revenue Code. Section 185(j) of the Tax Code reads as follows: "(j) Unexposed photographic films (including motion picture films but not including X-ray films), photographic plates and sensitized paper; photographic apparatus and equipment; and any apparatus or equipment designed especially for use in the taking of photographs or motion picture or in the developing, printing, or enlarging of photographs or motion picture films. Under this classification, the tax shall be twenty per centum . " There is no question that the photo chemicals imported by Kodak Phil. Ltd. are designed especially for photographic purposes. Its very name "photo chemicals" and the fact the importer thereof deals exclusively in the importation and sale of photographic materials justify the imposition of the 20% sales tax prescribed in Section 185(j) of the Tax Code. In view of the foregoing, and inasmuch as this case involves only the amount of P468.94, the same is returned to you for appropriate action in accordance with the above ruling of this Office. cdpr (SGD.) JOSE ARAAS Commissioner of Internal Revenue