EXECUTIVE ORDER NO. 507

: Executive Order No. 507 imposes an additional 10% sales tax on imported air-conditioning units, components, and parts.
: It was issued by President Ferdinand E. Marcos by virtue of the powers vested in him by the Constitution and by Section 193(c) of Presidential Decree No. 1358.
: No, the 10% sales tax is additional to the existing 25% sales tax imposed under Sections 196 and 193(b) of the National Internal Revenue Code, as amended.
: Air-conditioning units not certified by the Board of Investments as 'locally manufactured' shall be deemed imported and subject to the additional 10% sales tax.
: The Board of Investments certifies whether air-conditioning units are locally manufactured.
: It applies to all imported components and parts except those of common and general use, and those specifically authorized to be imported under the local content or rationalization program of the Board of Investments for the air-conditioning industry.
: The tax aims to protect the local air-conditioning industry by restoring a tax differential favoring locally manufactured units and parts over imported ones.
: It is a program of the Board of Investments requiring assemblers to manufacture and/or use locally made components instead of imported components.
: The order took effect immediately upon its issuance on July 14, 1978.