BIR Ruling

February 4, 1970 2nd Indorsement Respectfully returned to the Office of the President, Malacaang, Manila, attn.: Mr. Guillermo C. de Vega, Presidential Assistant, the within papers relative to the protest of Mr. Marvin Flake against the alleged imposition of additional tax on hotel rooms in Manila, with the following comment: This Office is not aware of any law or proposal to impose an additional internal revenue tax on hotel rooms aside from the 3% tax payable by proprietors or operators of hotels based on their gross receipts, pursuant to Section 191(15) of the Tax Code, as amended by Republic Act No. 6110. It may be stated in this connection, that the provision of Section 191-A of the Tax Code, as inserted by House Bill No. 17839 which later because Republic Act No. 6110 proposed a 20% tax on the gross receipts of operators or proprietors of restaurants, refreshment parlors, bars, cafes and other eating places which are maintained within the premises or compound of a hotel, motel or rest house. However, this proposal was vetoed by the President on the ground that the same might restrain the development of hotels which is essential to our Tourist Industry. casia MISAEL P. VERA Commissioner of Internal Revenue