BIR Ruling

March 31, 1970 2nd Indorsement Respectfully returned to the Honorable, the Secretary of Finance Manila the within proposed measure entitled ''AN ACT CREATING A SPECIAL FUND TO BE CONSTITUTED FROM (1) TEN PERCENT (10%) OF TOTAL RECEIPTS ON SPECIFIC TAXES FOR TOBACCO PRODUCTS AND LIQUORS; (2) TAXES, FEES, AND LICENSES FOR FIREARMS; (3) FEES AND LICENSES OF SECURITY AGENCIES (RA 5487); AND (4) PROCEEDS FROM THE SALE OF FORFEITED SMUGGLED ITEMS OR GOODS." cdti On the basis of actual collection of specific taxes on tobacco products during the fiscal year ending June 30, 1969 special allotments in the total amount of P90,639,393.11 were given to Philippine Virginia Tobacco Administration, Educational Fund and Philippine Tobacco Administration, pursuant to Republic Act Nos. 4155, as amended., 5447, and 5555. Under the proposed special peace and order fund, the 10% of the total receipts on tobacco products and liquors is more than P35,000,000.00. This is a considerable drain on the general fund of the government. Hence, this Office is not inclined to recommend the proposal to earmark 10% of the specific taxes collected on tobacco products and liquors for the proposed Special Peace and Order Fund. However, with respect to the proposal to allot the firearms license fees and the proceeds from the sale of forfeited smuggled goods to said fund, this Office interposes no objection thereto. With regard to the proposal to earmark the fees and licenses of security agencies under Republic Act No. 5487 to form part of the special peace and order fund, it is suggested that Section 8 (d) of Republic Act No. 5487 be amended so as to restore the 3% tax on gross receipts of security agencies and the percentage tax thus collected from said agencies be made to form part of the proposed special peace and order fund. acd (SGD.) MISAEL P. VERA Commissioner of Internal Revenue