Fixed Taxes Payable by a Cigarette Manufacturer and Importer

No date supplied BIR RULING NO. 002-70 Fixed Taxes Payable by a Cigarette Manufacturer and Importer A local factory manufacturing and selling (wholesale only) cigarettes and an occasional importer of cigarettes for wholesale is liable for the payment of two (2) annual fixed taxes in the amount of P1,000.00 each as manufacturer and as importer of cigarettes pursuant to Section 182(A)(3)(r) of the Tax Code, as amended by Republic Act No. 6110. It is not liable for the payment of the fixed tax as wholesale dealer of cigarette provided under Section 182(A)(3)(m) of the Tax Code, in case it has paid the fixed tax as manufacturer of cigarettes and that it sells its manufactured cigarettes at wholesale and in the original packages at the place of manufacture, (Sec. 197, Tax Code). As a manufacturer of cigarettes which is required to export local Virginia leaf tobacco as a condition precedent to its importation of foreign blending tobacco needed in its manufacture of cigarettes in accordance with the provisions of Republic Act No. 4155, its exportation of local Virginia leaf tobacco in pursuance of the aforesaid law will not render it liable to the payment of the annual fixed tax prescribed in Section 182(A)(3)(s) of the Tax Code, as amended. Similarly, as a firm engaged in the manufacture of cigarette, its importation of raw materials such as cigarette paper in bobbins, cigarette tipping paper and filter tips does not make it liable to the payment of the annual fixed tax imposed in Section 182(A)(3)(t) of the Tax Code, as amended. It is understood, however, that its importation of the hereinabove mentioned raw materials is limited to the need and consumption of its manufacturing requirements.