Section 197
SEC. 197. 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 forty per centum of the gross selling price or gross value in money of the articles BO 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 products 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 articles having, or being primarily designated for use with, a mechanical refrigerat ing 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 components and parts of each main assembly of the products are manufactured domestically: Provided, further, That not less than sixty per centum of the components and parts of each main assembly of the products are manufactured by the said manufacturing enterprise. The number of main assemblies which shall comprise a product and the intermediate components and parts of each main assembly shall be determined by the Board of Investments.