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Executive Order No. 507 (1978)
WHEREAS, the Board of Investments have determined, thru a yearly review of local capability, the components which can be locally manufactured, and have required their manufacture and/or use, in lieu of imported components, by existing assemblers;
Sec. 1. There shall be levied, assessed and collected an additional ten (10%) per cent sales tax on imported airconditioning units, components and parts, which shall be in addition to the twenty-five (25%) per cent sales tax imposed under Section 196 and Section 193(b) of the National Internal Revenue Code, as amended, and shall be collected at the same time and in the same manner.
Sec. 2. For purposes of the additional ten (10%) per cent sales tax herein imposed, all airconditioning units which have not been certified by the Board of Investments as "locally manufactured" shall be deemed to be imported. All imported airconditioning components and parts other than those which are of common and general use and those which are specifically authorized to be imported under the local content or rationalization program of the Board of Investments for the airconditioning industry, shall likewise be subject to the additional ten (10%) per cent sales tax.
Sec. 3. This Executive Order shall take effect immediately.
Done in the City of Manila, this 14th day of July, in the year of Our Lord, Nineteen Hundred and Seventy-Eight.