BIR Ruling

July 7, 1966 Mrs. Teresita E. Jorvina 15 Honradez Street Malabon, Rizal M a d a m : This refers to your letter dated June 11, 1966 requesting information as to the rates of sales tax payable by a manufacturer of bath soap, hair shampoo and other detergent articles. LLphil In reply, I have the honor to inform you that bath soap and other detergents are not toilet preparations within the purview of Section 184(c) of the Tax Code. They are, therefore, subject to only 7% sales tax pursuant to Section 186 of the same Code. Hair shampoo containing 5% or less of saponaceous matter is considered as toilet preparation and, therefore, subject to 50% sales tax pursuant to Section 184(c) of the Tax Code. However, hair shampoo containing more than 5% saponaceous matter and intended solely for cleansing purposes are considered ordinary articles subject to the 7% sales tax prescribed by Section 186 of the same Code. As manufacturer of the foregoing articles, you are also subject to the annual fixed tax of P20.00 prescribed in Section 182(A)(1) of the Tax Code. LLjur Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue