Bureau of Local Government Finance Opinion

September 19, 2016 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 2nd Indorsement Respectfully returned to the OIC Regional Director, Bureau of Local Government Finance, Region XII, Koronadal City, the herein attached indorsement dated 25 August 2016, relative to the letter dated 17 August 2016 of Mr. Marloun C. Gumbao, City Treasurer, Koronadal City, seeking for clarification on the interpretation or distinction between "office supplies" and "school supplies" for purposes of local business tax assessment. HTcADC Business dictionaries define "office supplies" as the materials such as paper and pens that are needed in offices ( i.e. , Cambridge Business English Dictionary). In practical terms, "school supplies," on the other hand, are items that are commonly used by a student in a course of study. From these definitions, it could be easily inferred that certain items or materials classified as "school supplies" could also be classified as "office supplies," depending on how the said materials or objects are consumed, used or utilized. However, for purposes of local business taxation, Section 143 (c) of Republic Act No. 7160, otherwise known as the Local Government Code (LGC) of 1991, is clear: "xxx xxx xxx (c) On exporters, and on manufacturer, millers, producers, wholesalers, distributors, dealers or retailers of essential commodities enumerated hereunder at a rate not exceeding one-half (1/2) of the rates prescribed under subsections (a), (b), and (d) of this Section: (1) Rice and Corn; (2) Wheat or cassava flour, meat, dairy products, locally manufactured, processed or preserved food, sugar, salt and other agricultural, marine, and fresh water product, whether in their original state or not; (3) Cooking oil and cooking gas; (4) Laundry soap, detergents, and medicine; (5) Agricultural implements, equipment and post-harvest facilities, fertilizers, pesticides, insecticides, herbicides and other farm inputs; (6) Poultry feeds and other animal feeds; (7) School supplies; and (8) Cement. xxx." Expressio unius est exclusio alterius . The express mention of one thing in a law, means the exclusion of others not expressly mentioned therein. Thus, it is understood that the express enumeration of the essential commodities that are subject to the tax rate specified in Section 143 (c) means that those not included in such enumeration are deemed excluded. As "office supplies" are not part of the enumeration in the law, then the same shall be subject to the rates provided under Section 143 (a), (b) and (d) of the LGC. Please be guided accordingly. (SGD.) NIO RAYMOND B. ALVINA OIC Executive Director