BIR Ruling No. 002-65

January 8, 1965 BIR RULING NO. 002-65 Miss Emilia de la Cruz 362-X Jones Avenue Cebu City M a d a m : Reference is made to your letter dated December 11, 1964 requesting information as to whether or not locally purchased diesel fuel used as raw material in the manufacture of carbon dioxide gas is deductible from the gross selling price thereof. In answer thereto, I have the honor to inform you that the cost of articles subject to specific tax when used as raw material in the manufacture of articles subject to the percentage tax are not, for purposes of the sales tax, deductible from the gross selling price of the manufactured product. Accordingly, the cost of the diesel fuel used as raw material in the manufacture of carbon dioxide gas is not deductible from the gross selling price thereof. Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue