Classification of Bread and Ordinary Bakery Products as essential articles under Section 201(h) of the National Internal Revenue Code, as amended, pursuant to Letter of Instructions No. 1144 dated May 25, 1981

November 12, 1981 REVENUE REGULATIONS NO. 19-81 SUBJECT : Classification of Bread and Ordinary Bakery Products as Essential Articles under Section 201(h) of the Nat ional Internal Reve nue Code, as Amended, Pursuant to Letter of Ins tructions No. 11 44 Dated May 25, 1981 TO : All Internal Revenue Officers and Others Concerned SECTION 1 . Scope . Pursuant to the provisions of Letter of Instructions No. 1144 and Section 326 in relation to Section 4 of the National Internal Revenue Code, as amended, these regulations shall govern the implementation of the said Letter of Instructions classifying bread and ordinary bakery products as essential articles under Section 201(h) of the National Internal Revenue Code, as amended. SECTION 2 . Tax on bakery products . For purposes of imposing the tax on bakery products under Section 199(a) and 201(h) of the National Internal Revenue Code, as amended, the following bakery products are hereby classified as follows: (a) Essential articles subject to five per cent (5%) sales tax under Section 201(h) of the National Internal Revenue Code, as amended, e.g . cd (1) Slice Bread (2) Roll Bread a) American a) Super jumbo b) Raisin b) Jumbo hotdog c) Cream c) Hamburger d) Pullman d) Pan de lemon e) Tasty e) Monay f) Pan de sal (3) Others g) Nutriban a) Galletas h) Dory b) Camachille i) Gloria c) Kababayan (4) All other bakery products made from first class bread or hard flour and/or all purpose flour, yeast leavened, with sugar, fat and oil constituting not more than fifteen per centum (15%) of the weight of the flour. (b) All other bakery products not listed in the preceding paragraph nor falling within the definition of subparagraph (4) shall be subject to ten per cent (10%) sales tax under Section 199(a) of the National Internal Revenue Code, as amended. SECTION 3 . Requirement for persons selling both classes of bakery products . All persons selling both classes of bakery products shall maintain two sets of sales invoices and receipts for their bakery products prescribed under Revenue Regulations Nos. 16-78 and 4-80, dated October 25, 1978 and July 15, 1980, respectively. One set shall be for the bread and ordinary bakery products and another set for the pastries, cakes and bakery products. SECTION 4 . Transitory provisions . To provide for an effective enforcement of these regulations, all persons subject to the five per cent (5%) sales tax imposed herein shall comply with the provisions of Section 3 of these regulations starting December 1, 1981; otherwise, they will not be entitled to claim the preferential tax treatment as provided for by the said Letter of Instructions. If the rate of sales tax on bread and ordinary bakery products sold between May 25, 1981 and December 31, 1981 cannot be ascertained, the ten per cent (10%) sales tax shall be imposed. casia SECTION 5 . Repealing Clause . All existing laws, rules and regulations, or part thereof inconsistent with the provisions of these regulations are hereby revoked or modified accordingly. SECTION 6 . Effectivity . These regulations shall apply to bread and ordinary products sold beginning May 25, 1981. casia (SGD.) CESAR VIRATA Minister of Finance Recommended by: (SGD.) RUBEN B. ANCHETA Acting Commissioner