BIR Ruling

December 3, 1974 Mr. Nemesio G. Co R-215 Alliance Building 410 Quintin Paredes Street Binondo, Manila S i r : This refers to your letter dated December 2, 1974 stating as follows: "A taxpayer is engaged in the manufacture of printed plastic bags to be used as containers for food and non-food products. It has machineries for printing designs and letterings on the plastic bags that it manufactures. It sells plastic bags with printed designs and letterings but does not accept printing jobs for plastic bags manufactured by others. The selling price to customers include the plastic bags and printing." You now ask information as to whether or not the taxpayer is a manufacturer, and, in the affirmative, whether or not, in computing the 7% tax payable, the cost of the raw materials and printing ink used is deductible from the gross selling price of the plastic bags. In reply, I have the honor to inform you in the affirmative. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5