BIR Ruling

May 26, 1967 3rd Indorsement Respectfully returned to the Honorable, the Secretary of Finance, Manila the within papers bearing on the three (3) measures suggested by the Secretary of Commerce in his letter dated February 23, 1967, with the following comment on the proposal to exempt from the sales tax logs purchased by plywood and veneer manufacturers: prcd Section 186 of the Tax Code imposes the 7% sales tax on all logs sold by concessionaires or producers of said logs. Their liability to the 7% tax has been confirmed by the Supreme Court in the case of Commissioner of Internal Revenue vs. Antonio G. Guerrero, G.R. Nos. L-19074 and L-19089, January 31, 1967. No exception is provided for in said Section of the Tax Code. Nor is there any law on which to base exemption from the 7% sales tax of logs sold to veneer and plywood manufacturers. However, the manufactured veneer and plywood products which are actually exported by the manufacturers thereof are exempt from the sales tax in accordance with Section 188(e) of the same Code. prll (SGD.) MISAEL P. VERA Commissioner of Internal Revenue