Question & AnswerQ&A (LETTER OF INSTRUCTIONS NO. 1144)
They were classified as ordinary articles and taxed at the rate of 10% under Section 199.01 of the National Internal Revenue Code, as amended.
The sales tax rate was set to 5% of the gross selling price.
They are classified under Section 201(H) of the National Internal Revenue Code.
Social changes that made bread and bakery products major components of the food basket of the Filipino people, and the adverse impact of the change in sales tax computation on the baking industry.
The Ministry of Finance, through the Bureau of Internal Revenue.
Yes, all laws, orders, and previous Letters of Instructions inconsistent with this one are repealed and/or modified accordingly.
It took effect immediately upon issuance on May 25, 1981.
It ensures a lower sales tax rate, helping to stabilize prices and maintain the baking industry's viability to provide affordable food.