BIR Ruling

October 27, 1976 Tax on Imported Foodstuff This refers to your protest against the assessment (IT-76-0102) issued to you, in the amount of P301,899.24, as deficiency advance sales tax on your importations of canned fish of various brands, squid and Alaska milk during the year 1974. In reply, I have the honor to inform you that after a restudy and analysis of section 183, in relation to section 186-B of the Tax Code, this Office has arrived at the conclusion that even imported meat, milk, fruits and vegetable, fish and other sea food, wheat flour, and poultry and animal feeds are subject to only 5% sales tax. Accordingly, your payment of 5% advance sales tax on the aforementioned importations is correct, and therefore, you are not liable for any deficiency advance sales tax on said importations. In view thereof, our assessment (IT-76-0102), demanding payment of P301,899.24, as deficiency advance sales tax, is hereby cancelled and this case considered closed. cdtech