Percentage tax on merchants sales.
Section 40
SEC. 40. Percentage tax on merchants sales.—All merchants not herein specifically exempted shall pay a tax of one-third of one per cent on the gross value in money of the commodities, goods, wares, and merchandise sold, bartered, or exchanged by them, such tax to be based on the actual selling price or value at which the things in question are disposed of, whether consisting of raw material or of manufactured or partially manufactured products, and whether of domestic or foreign origin. Butchers, bakers, and persons engaged in public market places in the sale of domestic food products at retail, and other small merchants whose gross quarterly sales do not exceed one hundred and twenty-five pesos are exempt from this tax. "Merchant," as here used, means a person engaged in the sale, barter, or exchange of personal property of whatever character. Except as specially provided, the term includes manufacturers who sell articles of their own production and commission merchants having establishments of their own for the keeping and disposal of goods of which sales or exchanges are effected, but does not include merchandise brokers.