Taxability of a Beverage Fermented from Grape Juice (Schloss Boosenburg)

February 23, 1966 BIR RULING NO. 009-66 The Acting Manager Liquor & Grocery Department Compaia General de Tobacos P. O. Box 143 M a n i l a S i r : This refers to your letter dated October 25, 1965 requesting determination of the alcoholic strength of a bottle of beverage fermented from grape juice (Schloss Boosenburg) which you submitted to this Bureau for the purpose of determining the specific tax due thereon. In reply, I have the honor to inform you that said beverage contains 2.2% alcohol or 4.4 proof and shall be taxed at P12.00 per gauge liter as sparkling wine, under Section 134(a) of the Tax Code. This is for the reason that Schloss Boosenburg is wine within the purview of the above-cited provision, having been produced thru the fermentation of grape juice and sparkles or effervesces when the carbon dioxide it contains is liberated by opening the bottle or container. (Chemistry of Wines and Liquors, 2nd Ed. p. 185) Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue