BIR Ruling

June 6, 1974 Mr. Chung Tiong Tay Asst. General Manager La Suerte Cigar & Cigarette Factory South Super Highway Paraaque, Rizal Dear Mr. Chung : In connection with your letter-query, dated June 3, 1974, requesting clarification as to whether or not the printing of the maximum retail price on each pack of locally-manufactured cigarette is mandatory, please be informed that the printing of the maximum retail price on the cigarette packs is a statutory requirement under the present provisions of Section 137(b) of the National Internal Revenue Code, as earlier amended by Presidential Decrees Nos. 69, 88 and 149 and lately amended by Presidential Decree No. 441-A. Quoted for your further information and guidance are pertinent portions of Presidential Decree No. 441-A which now form part of the Law of the land effective May 1, 1974. "2. The foregoing amendment to Section 137(b) of the National Internal Revenue Code, as amended, revising the maximum retail prices per pack of local cigarettes shall not be construed to mean as allowing any downgrade reclassification of said cigarettes whereby any existing brand or brands of local cigarettes duly registered with the Bureau of Internal Revenue under a particular tax rate or class at the time of the effectivity of this Decree shall be allowed to be reclassified and be subject to a lower rate of specific tax by reason of the revised maximum retail prices herein prescribed. "3. During the period of sixty (60) days from the date of the effectivity of this Decree, all cigarette manufacturers concerned shall be allowed to use their cigarette labels imprinted with the old maximum retail prices per pack of their products, after which they shall comply with the statutory requirement under Section 137(b) of the National Internal Revenue Code, as amended, regarding the printing of the maximum retail price on each pack of local cigarettes. That statutory requirement does not, however, apply to cigarettes of local manufacture, not mechanically wrapped or packed, subject to the highest rate specific tax and for which the law does not set any maximum retail price per pack." aisa dc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5