Publishing Department Order No. 17-78

July 24, 1978 REVENUE MEMORANDUM CIRCULAR NO. 049-78 SUBJECT : Publishing Department Order No. 17-78 TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, there is quoted hereunder the full text of Department Order No. 17-78: "Republic of the Philippines "Department of Finance "Office of the Secretary "Manila "June 20, 1978 "DEPARTMENT ORDER NO. 17-78 '"SUBJECT : Classification of articles as similar or analogous to the articles enumerated in Sections 194, 196 and 197 of the National Internal Revenue Code of 1977, as amended, based on their inherent essentiality '"TO : The Commissioner of Internal Revenue The Commissioner of Customs All Others Concerned "Pursuant to the provisions of Presidential Decree No. 1358, the articles enumerated below are hereby determined and classified as similar or analogous to the articles enumerated in Sections 194, 196 and 197 of the National Internal Revenue Code of 1977, as amended: "1. Classified as falling under Sec. 194 of the Tax Code taxable at the rate of fifty (50%) per centum . "a. Sec. 194 (a) "1. Glass beads necklace; "2. Pressed glass stones used in the manufacture of novelties; "3. Gold cross or holy emblems and all kinds of gold emblems or insignia; "4. Gold plates, solders and castings; "5. Wristwatch studded with precious stones; "6. Gold chains; "7. Gold coins; "8. Gold bars; "9. Earrings, rings, bracelets, headbands, brooches, pendants and cuff links made of precious metals and/or precious or semi-precious stones or imitations thereof. "b) Sec. 194 (b) "1. Creme hair dressing lotion; "2. Cold waving lotion; "3. After-shave lotion; "4. Facial or body cream, whether medicated or not; "5. Hair Tonic; "6. Dandricide; "7. Essential oil; "8. Lipstick; and "9. Spray Net. "2. Classified as falling under Sec. 196 of the Tax Code, taxable at the rate of twenty-five (25%) per centum . "a) Sec. 196 (b) "1. Electric guitar "b) Sec. 196 (d) "1. Steam bath heaters; "2. Pop corn machine; "3. Waffle hot dog machine; "4. Cotton candy machine; and "5. Roasters. "c) Sec. 196 (g) "1. Felt hats; "2. Cellophane cloth; "3. Rubberized knitted fabric; "4. Curtains, draperies and upholstery fabric; and "5. Leather fabrics. "d) Sec. 196 (k) "1. Electricity and/or battery operated barber's equipment including shears, iper and massage apparatuses. "e) Sec. 196 (l) "1. Marimba; and "2. Electronic piano. "3. Classified as falling under Sec. 197 of the Tax Code taxable at the rates specified therein: "a) Sec. 197 (A) "1. Desk sets "b) Sec. 197 (C) "1. Watchman's clocks; "2. Bundy clock; "3. Time stamp; and "4. Job recorders. "c) Sec. 197 (D) "1. Air circulator; and "2. Air purifier. "d) Sec. 197 (F) "1. Audio disc "e) Sec. 197 (G) "1. Closed circuit television system; and "2. Minifon wire recorder. "The foregoing enumeration is not exclusive and is without prejudice to the power of the Commissioner of Internal Revenue to issue rulings and opinions in connection with the implementation of tax laws, including rulings on the classification of articles for sales tax and similar purposes." "SGD. CESAR VIRATA "Minister of Finance "RECOMMENDED BY: "SGD. EFREN I. PLANA "Acting Commissioner of Internal Revenue In relation to department Order No. 17-78, the Minister of Finance issued another Memorandum dated July 13, 1978 which is likewise quoted hereunder: "Republic of the Philippines "Department of Finance "Office of the Secretary "Manila "July 13, 1978 "MEMORANDUM to: "The Honorable Commissioner of Internal Revenue "The Honorable Commissioner of Customs "The Honorable Insurance Commissioner "The Honorable Treasurer of the Philippines "The Honorable Chairman, Embroidery Apparel & Control Board "The Honorable Chairman, Gold Mining Industry and All Concerned "This is in connection with DEPARTMENT ORDER NO. 17-78 dated June 20, 1978, regarding the classification of articles as similar or analogous to the articles enumerated in Sections 194, 196 and 197 of the National Internal Revenue Code of 1977, as amended, based on their inherent essentiality, which was recently distributed for your information and guidance. " Please make it of record that the effectivity of the said DEPARTMENT ORDER , should be June 30 , 1978 instead of June 20 , 1978 ." (Emphasis supplied) "(SGD.) CESAR VIRATA "Minister of Finance All internal revenue officers and others concerned with the enforcement of internal revenue laws are hereby enjoined to be guided accordingly and to give the Department Order a wide publicity as possible. aisa dc EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-P4519-F2828-A-8