BIR Ruling

November 21, 1967 Mr. Dionisio A. Hernandez 131 3rd Street Caloocan City S i r : This refers to your letter dated October 20, 1967 for and in behalf of Mr. and Mrs. Leoncio J. Jose of Barrio Makinaya, Subic, Zambales, stating that they are procuring food refuse from the mess halls and kitchens of the U.S. Naval Base at Olongapo City; that the food refuse in the form in which they are collected from the mess halls and kitchens of said naval base is not merchandise but simply a garbage turned to good use by being fed to hogs; that said food refuse taken in the same condition to the piggery for hog feeding is not taxable and that to consider it as taxable same must have undergone some processes of manufacture or preparation. You now request for tax exemption on said collected food refuse. In reply, I have the honor to inform you that food refuse for hog feeding, falls under the category of garbage. It does not fall under any provision of the Tax Code nor any law wherein it may be considered as taxable, neither can it be classified as a commodity for tax purposes. Therefore, the said food refuse for hog feeding cannot be considered as taxable. In view thereof, the food refuse procured from the U.S. Naval Base of Olongapo City is not subject to any tax. Very truly yours, (SGD.) AMBROSIO M. LINA Acting Commissioner of Internal Revenue