BIR Ruling

April 18, 1973 Mr. Eustaquio Estepa Mabituon, Masambong San Francisco del Monte Quezon City S i r : This refers to your letter dated April 6, 1973 stating, among others, that you are the inventor of a CELLOPHANE WRAPPING DEVICE FOR CIGARETTE PACKS which is duly patented and registered with the Philippine Investors Commission; and that said device is intended to be used by cigarette manufacturers for wrapping originally hand-packed cigarettes. Under the foregoing circumstances, you would like to be informed whether the ruling issued by this Office dated August 27, 1972, which is applicable to users of your invention is still in force. In reply, I have the honor to inform you that the ruling dated August 27, 1970 stating that: "The amendment of Section 137(b) of the Tax Code by Republic Act No. 6110 wherein the kind of wrapping or packing materials have been deleted from the old law as a criterion for determining the rate of specific tax on cigarettes the use of cellophane as a wrapping material of the original containers of your manufactured cigarettes will not affect the rate of specific tax due on said cigarettes. And if, as represented, the cigarettes which you manufacture are handpacked, that is, manually wrapped in packed in the container or cigarette package in the cellophane is a mere cover of the handpacked and stamped cigarettes, you are not liable to the increased rate of tax prescribed in Section 137 (b)(4) of the Tax Code, even if you use a machine in covering the said handpacked or wrapped cigarettes with cellophane is still in force. aisa dc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue