Section 1. Section One hundred and eighty-five of
Commonwealth Act Numbered Four hundred and sixty-six, as amended, is
hereby further amended by repealing subsections (e), (f), and (m).
Sec. 2. A new section is inserted between sections
one hundred eighty-five and one hundred eighty-six of Commonwealth Act
Numbered Four hundred and sixty-six, as amended, to read as follows:
"Sec. 185-A. Percentage tax on sales of
refrigerators, air-conditioners, beverage coolers, ice cream cabinets,
and others. — There shall be levied, assessed and collected once only
on every original sale, barter, exchange, or similar transaction
intended to transfer ownership of, or title to, the articles
hereinbelow enumerated a tax equivalent to thirty per centum of the
gross selling price or gross value in money of the articles so sold,
bartered, exchanged or transferred, such tax to be paid by the
manufacturer or producer: Provided, however, That where the articles
hereinbelow enumerated are locally manufactured and come under the
classification of non-integrated manufactured products as hereinafter
defined, the tax shall be fifteen per centum: Provided, further, That
where the articles hereinbelow enumerated are locally manufactured and
come under the classification of integrated manufactured products as
hereinafter defined, the tax shall be seven per centum: Provided, still
further, That where the articles enumerated hereinbelow are
manufactured out of materials subject to tax under this section, the
total cost of such materials, as duly established, shall be deductible
from the gross selling price or gross value in money of such
manufactured articles;
"(a) Refrigerators of all types;
"(b) Beverage coolers, ice cream cabinets, water
coolers, food and beverage storage cabinets, ice-making machines, and
mild cooler cabinets, each such article having, or being primarily
designated for use with, a mechanical refrigerating unit operated by
electricity, gas, kerosene, or other means; and
"(c) Air-conditioning units.
"Any part or accessory of the above-mentioned articles shall be taxed
at the same rate as the finished articles.
"The words 'integrated manufactured products' mean articles
manufactured in a manufacturing enterprise which undertakes the
operations of processing and/or physically converting raw materials
such as metal sheets, plastic pellets, wires, rods, extrusion tubings,
castings, forgings, and chemical compounds into various intermediate
components and parts, and subsequently assembling or fitting them
together into completed and finished articles: Provided, however, That
not less than eighty per centum of the total quantity, including the
compressor unit, if any, of all the aforementioned intermediate
components and parts of said products are manufactured by and within
the said manufacturing enterprise.
"The words 'non-integrated manufactured products' means articles
manufactured in a manufacturing enterprise which undertakes the
operations of a manufacturing plant as defined in the preceding
paragraph: Provided, however, That not less than eighty per centum of
the total quantity of all the aforementioned intermediate components
and parts of said products are manufactured by and within the said
manufacturing enterprise."
Sec. 3. This Act shall take effect upon its approval.
Approved: June 7, 1961
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