BIR Ruling [DA-033-02]

March 07, 2002 BIR RULING [DA-033-02] CAM Brokerage Corporation Rm. 225, Natividad Building corner Pinpin St. Escolta, Manila Attention: Ms. Carmelita M. Chua President Gentlemen : This refers to your letter dated August 7, 2001, requesting on behalf of your client, Russford Trading Corporation for a ruling as to whether imported candles in its finished form is subject to excise tax. It is represented that your abovenamed client is the importer/consignee of plastic toys and household wares which contain, among others, 1,023 cartons of candles from Hongkong which arrived in Manila on August 4; 2001; and that the Bureau of Customs has ruled and determined that the candles are subject to tax. In reply, please be informed that candles are not among the articles enumerated in Section 148 of the Tax Code of 1997 subject to excise tax However, paragraph (c) thereof provides that waxes and petroleum shall be subject to excise tax of three pesos and fifty centavos (P3.50), per kilogram. Accordingly, your clients' imported candles, whether derived from petroleum products or from plant or animal sources (paraffin wax) shall be subject to excise tax on their wax content pursuant to said Section 148(c) of the Tax Code of 1997 and to the 10% VAT under Section 107(A) of the same Code. (BIR Ruling No. 154-91 dated August 16, 1991) Very truly yours, Commissioner of Internal Revenue By: (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner (Legal & Inspection Group)