BIR Ruling

December 6, 1976 The President Hanson Industries, Inc. 116 Tandang Sora St. Caloocan City S i r : This refers to your letter dated November 10, 1976 requesting that our ruling dated September 8, 1976 classifying your products, Hanson Herbal Shampoo and Hanson Super Fresh Shampoo as articles subject to the 7% sales tax under Section 186 of the Tax Code, be amended to Morning Dew Herbal Shampoo and Morning Dew Super Fresh Shampoo. The request is made on account of the fact that the tradename Hanson Herbal Shampoo was changed to Morning Dew Herbal Shampoo, and Hanson Super Fresh Shampoo to Morning Dew Super Fresh Shampoo. In reply, I have the honor to inform you that shampoo oils and liquids containing more than 5% saponaceous matter and, therefore partaking the nature of soap and intended solely for cleansing purposes, are taxable at the rate prescribed in Section 186 of the Tax Code. (Sec. 4, Revenue Regulations No. V-42). As laboratory analysis of the products conducted by this Office reveal that Morning Dew Herbal Shampoo and Morning Dew Super Fresh Shampoo contain 9.627% and 7.09 saponaceous matter, respectively, your sales of said products are subject to the 7% sales tax prescribed in Section 186 of the Tax Code. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3