Public Market Defined, Public Market, Subject to Government Control and Supervision

March 28, 1974 BIR RULING NO. 005-74 Public market defined, public market, subject to government control and supervision . This refers to your letter dated January 10, 1974 requesting clarification as to whether or not public markets, as contemplated under Section 204 refers only to those markets which are operated or owned by the government or does it also refer to markets which are owned by private individuals cdta . In reply, I have the honor to inform you that the term "public market" means "a place where vendors or perishable products may resort for their sale or exchange without fees or charges save such as may be necessary for maintenance of place, without restriction save such as may be necessary to maintain orderly conduct at place." ( 35 Words and Phrases 159 ). "A market is a public market when it is dedicated to the service of the general public and is operated under government control and supervision as a public utility, whether it be owned by the government or by any instrumentality thereof or by any private individual." ( The Aranque Market Extension, Chinese Vendors Association vs Hon. Manuel de la Fuente, et. al., G. R. No. L-2127 September 20, 1950 ). From the foregoing definition, public market has no distinction as to the ownership whether it is owned by the government or by a private person as long as vendors or merchants meet in said place to sell their goods, or merchandise. What is noteworthy from the above definitions of a public market is that it must be subject to control and supervision of the government as regards the observance or maintenance of orderly conduct at the place. In view thereof, the public market vendors at Balintawak Clover Leaf Market selling exclusively domestic meat, fruits, vegetables, poultry fresh and other domestic food products fall within the purview of Section 204 of the Tax Code, as amended by Presidential Decree No. 69, hence, exempt from issuing sales invoices or receipts, as provided therein. cdasia