EXECUTIVE ORDER NO. 40 August 22, 1986
FURTHER AMENDING SECTION 163 OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED
WHEREAS, books are indispensable in the pursuit of knowledge and education;
WHEREAS, imported textbooks, pocketbooks and bestsellers, and other similar publications are classified in the National Internal Revenue Code, as amended, as other articles subject to a sales tax higher than the sales tax of essential articles;
WHEREAS, the reclassification of imported books as essential articles will result in the reduction of their prices, and thereby promote their wide leadership and use
NOW, THEREFORE, I CORAZON C. AQUINO, President of the Philippines, do hereby order:
Sec. 1. Section 163, paragraph (2), of the National Internal Revenue Code, as amended, is hereby further amended by adding in the enumeration therein, subparagraph (o) to read as follows:
"(o) Books (such as textbooks, pocketbooks, and bestsellers, including similar publications). The term books includes any species of publication which the author select to embody his literary product."
Sec. 2. The Minister of Finance, upon recommendation of the Commissioner of Internal Revenue, shall promulgate the necessary rules and regulations to implement this Executive Order.
Sec. 3. All laws, orders, issuances, and rules and regulations or parts thereof inconsistent with this Executive Order are hereby repealed or modified accordingly.
Sec. 4. This Executive Order shall take effect immediately.
Done in the City of Manila, this 22nd day of August, in the year of Our Lord, nineteen hundred and eighty-six.
The Lawphil Project - Arellano Law Foundation
