QuestionsQuestions (EXECUTIVE ORDER NO. 186)
To further amend Section 163(2) of the National Internal Revenue Code (NIRC) by reclassifying certain undecorated/plain ceramic tiles as essential articles, making them more affordable to the public for sales tax purposes.
Section 163, Paragraph (2) of the NIRC, as amended.
It added a new sub-paragraph (p) under Section 163(2) enumerating particular sizes of undecorated/plain ceramic tiles (white or colored) that are classified for sales tax purposes.
Undecorated and plain ceramic tiles (white or colored) measured within specific dimensions listed in the EO.
101.6 mm x 101.6 mm (4 in x 4 in); 107.95 mm x 107.95 mm (4-1/4 in x 4-1/4 in); 101.6 mm x 203.2 mm (4 in x 8 in); and 152.4 mm x 152.4 mm (6 in x 6 in).
No. It covers only “undecorated and plain” ceramic tiles. Decorated tiles are not within the EO’s described scope.
It clarifies that the tiles may be either white or colored, as long as they are undecorated and plain and have the specified dimensions.
It states that the reclassification is “for purposes of the sales tax” and frames the covered tiles as essential articles, which generally receive preferential treatment compared to non-essential goods.
It takes effect fifteen (15) days after its publication in the Official Gazette.
It illustrates the constitutional/statutory principle that laws generally become effective upon publication (and after any additional grace period stated), so tax classification effects start only after the specified timeline.
Corazon C. Aquino as President of the Philippines, with Joker P. Arroyo as Executive Secretary.
Issued on June 5, 1987, and the document indicates the year as 1987.
Because classification determines the tax treatment. If the law treats certain goods as essential articles, they may be subject to lower rates, exemptions, or more favorable conditions than other goods under the NIRC.
Literal construction based on the exact dimensions listed; only tiles matching those stated sizes (and being undecorated/plain) fall under sub-paragraph (p).
Based on the text, it is not clearly within sub-paragraph (p), since the EO lists specific dimensions. Without another provision or amendment covering different sizes, coverage is limited to the enumerated measurements.
EO No. 186 amends the NIRC by adding sub-paragraph (p) to Section 163(2), classifying specific sizes of undecorated/plain ceramic tiles as essential articles for more favorable sales tax treatment, effective 15 days after publication.