BIR Ruling

December 9, 1971 Mr. Santiago Guerrero Olongapo City S i r : This refers to your letter dated December 8, 1971 requesting information as to the internal revenue taxes due on lubricants, bunker fuel oil, chemicals, paints and solvents which you purchased by bidding at Clark Air Base, Angeles City. In reply, I have the honor to inform you that lubricants are subject to the P.07 specific tax per liter of volume capacity pursuant to Section 142(b) of the Tax Code. Bunker fuel oil is subject to the P.40 specific tax per metric ton in accordance with Section 144 of the same Code. However, the chemicals, paints and solvents are subject to the 7% advance sales tax based on the actual purchase price thereof, plus 25% mark-up pursuant to Section 183(b), in relation to Section 186, both of the Tax Code. The aforesaid taxes shall be paid before removal of the foregoing articles from Clark Air Base. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue