BIR Ruling

December 2, 1969 Honorable Jose W. Diokno Senate, Congress of the Philippines Manila S i r : This refers to your letter dated October 30, 1969 requesting our ruling on the business tax liability of the fisherman or fishing operator who sells dried fish previously caught by him. Your request is in connection with the letter of Mr. Victorino B. Bucane of Binon-an, Batad, Iloilo dated October 15, 1969, seeking your opinion as to whether the 7% sales tax being collected from the fisherman or fishing operators by the Revenue Collection Agent thereat on the gross sales of fish preserved by drying is justified. In reply, I have the honor to inform you that pursuant to Section 188(b) of the Tax Code, as amended by Republic Act No. 1856 which took effect on June 22, 1957, all kinds of fish and the by-product thereof when sold, bartered or exchanged by the fisherman or fishing operator whether in their original state or not, are exempt from the sales tax. Accordingly, in the case of fish caught by the fisherman or fishing operator and subsequently dried by him, the dried fish is not subject to the 7% sales tax. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue