BIR Ruling

October 28, 1971 Mr. Romeo S. Rojas General Manager Kolor Industries, Inc. 36 Scout Fuentebella St. Quezon City S i r : This refers to your letter dated October 21, 1971 requesting information as to the correct rate of sales tax applicable to the product, "CAR-FRESHNER" deodorizer which you intend to manufacture locally. You would like also to be informed as to the rate of advance sales tax due on your importation of raw materials such as chemical impregnating compound like essential oils and absorbent paper which you will use in the manufacture of the aforesaid product. cdt In reply, I have the honor to inform you that the product, "CAR-FRESHNER" deodorizer which you intend to manufacture and which is used to kill all kinds of bad odor and remove unpleasant smell of cigarette smoke indoors, is subject to the 7% sales tax imposed in Section 186 of the Tax Code. Moreover, your importation of chemical impregnating compound like essential oils and absorbent paper which you use as raw materials in the manufacture of the aforesaid product is subject to the 7% advance sales tax, based on the landed cost thereof plus 25% mark-up, pursuant to Section 183(b) in relation to Section 186, both of the Tax Code. cdta Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue