BIR Ruling

August 8, 1973 3rd Indorsement Returned to the Chief, Gasoline & Miscellaneous Specific Taxes Division, thru the Revenue Operations Head (Specific Tax) the attached papers bearing on the report of Messrs. Fabio M. Olvina and Jose R. Bitoy seeking clarification as to whether importers of saccharine are subject to the annual fixed tax of P500.00 under Section 182 (A) (B) (u) of the Tax Code and to file an importer's bond under Section 156 of the same Code, considering that their importations of saccharine are not for sale but used as raw material in the manufacture of articles subject to the sales tax. Under Section 182 (A)(B)(u) of the Tax Code, manufacturers or importers of saccharine or sodium saccharinate or any of its other derivatives and salts and other artificial sweetening agents are subjects to the P500.00 annual fixed tax. The privilege tax (or fixed tax) is a levy or tax laid upon those desiring to engage in business or pursue an occupation or profession. Thus, considering that the importations of saccharine by the importers alluded to in the report of the abovementioned revenue officers were not conducted in the pursuit of a separate or distinct business but were made as an incident to their manufacturing operations as manufacturers of articles subject to the sales tax, then they cannot be considered as importers of saccharine under Section 182(A)(B)(u) of the Tax Code for purposes of the fixed tax therein imposed. As a corollary to the above, they are not also required to file the importer's bond under Section 156 of the Tax Code. cdta MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5