BIR Ruling

September 6, 1972 The General Manager Fortune Tobacco Corporation Parang, Marikina, Rizal S i r : This refers to your letter dated September 4, 1972 stating, among others, that you have devised a contrivance which you intend to use in your cigarette factory; that the contrivance operates simply by placing cigarette sticks in a box like container and by placing the containers/labels at the bottom side of the contrivance, the sticks are pushed upon them by means of air pressure; that the containers/labels are manually closed, affixed with strip stamps in just the same manner as are being presently employed; and that by the use of the contrivance, you increase production resulting in increased specific taxes due the government and also you comply strictly with the regulation relative to sanitation. cd Under the foregoing circumstances, you would like to request information as to whether or not the rate of specific tax due on your cigarette products is affected by the use of the aforestated contrivance. In reply, I have the honor to inform you that the use of the aforesaid contrivance in pushing cigarette sticks to the containers/labels will not affect the specific tax rate due on your cigarette products; subject to the condition that the said contrivance will not be used in the wrapping or packing of cigarettes. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue