BIR Ruling

July 5, 1967 Paredes, Poblador, Cruz & Nazareno Law Offices 575 Atlanta St., Port Area Manila Attention: Mr . Cipriano Azada Gentlemen : This refers to your letter dated May 24, 1967 requesting in behalf of the U.S. Tobacco Corporation that locally produced articles to be used in the manufacture or preparation of articles subject to specific tax and to form part thereof, be exempt from the payment of sales tax. In reply, I have the honor to inform you that your request cannot be granted for lack of legal basis. Section 183(B) of the Tax Code which provides exemption from the payment of sales tax on imported articles to be used by the importer himself in the manufacture or preparation of articles subject to specific tax or those for consignment abroad and are to form part thereof applies only to imported articles and not to locally produced articles. While this Office is in accord with the arguments advanced in support of your request, nevertheless, the only proper remedy under the circumstance is legislation. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue