Adopting a 25% Uniform Mark-Up In the Imposition of the Advance Sales Tax

EXECUTIVE ORDER NO. 883 March 16, 1983

ADOPTING A 25% UNIFORM MARK-UP IN THE IMPOSITION OF THE ADVANCE SALES TAX

WHEREAS, Section 193(b) of the National Internal Revenue Code provides varying mark-ups for imported articles;

WHEREAS, in line with the objective of promoting administrative simplicity it is necessary to adopt a uniform mark-up in the imposition of the advance sales tax.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, pursuant to the powers vested in me under Sec. 290-B of the National Internal Revenue Code, as amended, do hereby direct and order that:

Sec. 1. Section 193(b) of the National Internal Revenue Code, as amended, be amended to read as follows:

"(b) Sales tax on imported articles. When the articles are imported, the percentage taxes established in Section 194, 195, 196, 197, 198, 199 and 201 of this Code shall be paid in advance by the importer, in accordance with the regulations promulgated by the Minister of Finance and prior to the release of such articles...

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Summary of Executive Order No. 883

Uniform Mark-Up for Advance Sales Tax on Imported Articles
- Amends Section 193(b) of the National Internal Revenue Code to adopt a uniform 25% mark-up for imposing advance sales tax on imported articles. (Sec. 1)
- The advance sales tax is calculated based on the following:
  • Home consumption value or price of the imported articles, excluding internal revenue excise taxes
  • Plus 10% of the home consumption value or price
  • Plus postage, commission, customs duty, and similar charges (except freight and insurance)
  • Plus 25% of the total value of the articles (Sec. 1)
- The tax shall not apply to articles used by the importer in manufacturing or preparing articles subject to specific tax, provided that the National Economic & Development Authority certifies the availability of local raw materials of sufficient quantity, comparable quality, and price to meet the needs of manufacturers subject to specific tax. (Sec. 1)
- The order takes effect immediately. (Sec. 2)