BIR Ruling

August 27, 1970 Mr. Leon Goldenberg President Philippine Industrial Export Association, Inc. P. O. Box 1421, Manila S i r : This refers to your letter dated March 13, 1970 requesting that your products namely: (1) Suave Hairdressing and Conditioner and (2) Kingsmen Hair Pomade be subjected to the 7% sales tax under Section 186 of the Tax Code as medicated preparations. In reply, I have the honor to inform you that your Suave Hairdressing and Conditioner product is, as the name clearly implies, a hairdressing product subject to the 70% sales tax prescribed in Section 184(c) of the Tax Code, as amended by Republic Act No. 6110. The mere fact that it is medicated (assuming that the allegation is true) does not alter the character and use of said product as a toilet preparation. However, as the Kingsmen Hair Pomade contain marked antiseptic properties as proven by laboratory tests, and is, in fact, used to prevent the growth of dandruff bacteria, and it appearing further that its continued use is efficacious in keeping the scalp free from such infection, the same is subject only to the 7% sales tax pursuant to Section 186 of the Tax Code as medicated preparation. aisadc Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue