Imported Prayer Books is Subject to 10% Compensating Tax

December 15, 1987 BIR RULING NO. 399-87 169 48-84 399-87 His Eminence : This refers to your letter dated November 15, 1987 stating that Catholic Bishops' Conference of the Philippines is the recipient of prayer books called Breviaries for the use of the bishops, priests and seminarians in the Philippines; and that the said books which were ordered from the United States for religious use only arrived in Manila last October 27, 1987. Based on the foregoing facts, you now request exemption of said importation from the compensating tax. In reply, please be informed that Section 169 of the Tax Code enumerates the articles which are not subject to compensating tax. Since the aforesaid prayer books or Breviaries, are not included in the enumeration, there is no legal basis for the grant of exemption or waiver of the compensating tax. Accordingly the aforesaid importation is subject to 10% compensating tax pursuant to Section 163(2)(0) in relation to Section 169 of the Tax Code, based on the total value used by the Bureau of Customs in determining tariff and customs duties, including customs duties and all other charges, such tax to be paid before the withdrawal of said importation from customs custody. aisadc Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner