BIR Ruling

February 24, 1976 The Commissioner Bureau of Customs Manila Attention: The Chief, Legal & Intelligence Service S i r : This refers to your letter dated February 13, 1976 requesting clarification as to the correct interpretation of Sections 186 and 186-B of the National Internal Revenue Code relative to the imposition of advance sales tax on processed meat, milk, fruits and vegetables, fish and other sea foods, wheat flour and poultry and animal feeds. In reply, I have the honor to inform you that processed meat, milk, fruits and vegetables, fish and other sea foods, wheat flour and poultry and animal feeds are subject to the 5% sales tax prescribed in Section 186-B of the Tax Code. However, when such articles are imported, the same are subject to the 7% sales tax prescribed under Section 186 of the same Code. Accordingly, imported canned fish and canned milk as well as products which do not undergo the process of manufacturing or processing are invariably subject to the 7% advance sales tax, with a 25% mark-up pursuant to Section 183(b) in relation to Section 186, both of the Tax Code. cdtech Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."