The DOF noted that “a perusal of how the Tax Code defined non-essential goods was by providing an enumeration of goods deemed falling within its category or classification,” but wristwatches and clocks were never included among non-essential goods in previous tax laws slapping percentage taxes on jewelry, automobiles, and perfumes.
“Thus, it is clear that when [the provision] was carried forward as Section 150 of the 1997 Tax Code for the purposes of imposing excise tax at 20 percent, the enumeration therein did not contemplate the inclusion of wristwatches and clocks,” the DOF said.