REPUBLIC ACT NO. 4122 - AN ACT TO
FURTHER AMEND SECTION ONE HUNDRED EIGHTY-FIVE OF COMMONWEALTH ACT
NUMBERED FOUR HUNDRED AND SIXTY-SIX, OTHERWISE KNOWN AS THE NATIONAL
INTERNAL REVENUE CODE, AS AMENDED, AND FOR OTHER PURPOSES
Section 1. Section one hundred and eighty-five of
Commonwealth Act Numbered Four hundred and sixty-six, as amended, is
hereby further amended by deleting from subsection (g) thereof the
following articles: phonographs, combination radio and phonograph sets,
television sets, combination radio and televisions sets, gramophones,
and similar articles for reproducing music.
Sec. 2. A new section is hereby inserted between
Section s one hundred eighty-five and one hundred eighty-six, which
shall read as follows:
"Sec. 185-B. Percentage tax on sales of phonographs,
combination radio and phonograph sets of all types, television sets,
combination radio and television sets, combination
radio-phonograph-televisions sets, gramophones and similar articles. —
There shall be levied, assessed, and collected, one 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 articles as hereinafter defined, the tax shall be
seven per centum: provided, further, that where the articles enumerated
hereinbelow are manufactured from materials subject to tax under this
section, the total cost of such materials shall be deducted from the
gross selling price or gross value in money of such manufactured
articles:
(a) Phonographs;
(b) Combination radio and phonograph sets of all
types;
(c) Television sets;
(d) Combination radio and television sets;
(e) Combination radio-phonograph-television sets;
(f) Gramophones; and
(g) Similar articles for reproducing and/or recording
music and sound, like tape recorders, etc.
"The words 'locally manufactured articles' means articles manufactured
in a manufacturing enterprise which processes physically and/or
chemically raw materials such as copper clad boards, silicon, steel
laminations, other metal sheets, wires, plastic powder and/or pallets,
fiber boards, wood, metallic and non-metallic tubes, roads, special
paper, etc., into the various intermediate components and parts, and
subsequently assembling or fitting them together with other imported
collaterals or intermediate components and parts into such completed
and finished articles: provided, however, that if the following parts
are intermediate components of a finished article, except as used in
the tuner assembly, they must be locally manufactured within the
manufactured enterprise or any other local manufacturing enterprise:
1. Printed circuit roads;
2. Transformers;
3. Coils, except yoke and flyback, and sheet
metalware attached thereto except the mask;
4. Cabinets;
5. Chassis."
Sec. 3. This Act shall take effect upon its
approval.
Approved: June 20, 1964
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