BIR Ruling

February 6, 1973 2nd Indorsement Respectfully returned to the Honorable, the Secretary of Finance, Manila, the within papers bearing on the request of the Davao del Sur Sugar Planters Association, Inc. for the lifting of the 2% tax on sugar imposed under Section 189 of the Tax Code, as amended on the ground that it is an additional burden on sugar planters with the following comment and recommendation. Cooperative associations organized under the provisions of Act No. 3425 are exempt from, among others, the 2% miller's tax imposed by Section 189 of the Tax Code pursuant to Section 48 of the said Act, as amended by Rep. Act No. 702. However, the shares of the members thereof in the milled sugar are not included in the exemption. Such shares of the members of the cooperatives are subject to the 2% tax despite the amendment effected to the Tax Code by Presidential Decree No. 69. In view of the foregoing, and considering the need for raising revenue not only for the operation of the government but also for the expenses of its infrastructure projects now being undertaken, it is, therefore, recommended that the said request be not given due course. aisa dc (SGD.) MISAEL P. VERA Commissioner of Internal Revenue