50% Advance Sales Tax - Chocolate Flavor

March 27, 1979 BIR RULING NO. 010-79 50% Advance sales tax chocolate flavor This refers to your letter dated January 23, 1969 requesting reconsideration of our ruling contained in the Authority to Release Imported Goods No. IT-79-0000927 dated January 18, 1979 wherein the importation made by your client, Holland and Milk Products, Inc., of chocolate flavor was subjected to 50% advance sales tax on the total landed cost thereof plus 100% mark-up, imposed by Section 194(b) in relation to Section 193(b) both of the Tax Code of 1977, as amended by P.D. No. 1358. In reply, I have the honor to inform you that according to the analysis conducted by this Office, the aforesaid imported article is a flavor in the same category as essence and/or extract used to flavor food products, and since such essence and extract are enumerated under Section 194(b) of the Tax Code, then the importation of chocolate flavor of your client is subject to 50% advance sales tax based on the landed cost thereof plus 100% mark-up, pursuant to Section 194(b) in relation to Section 193(b), both of the Tax Code of 1977, as amended. Accordingly, your request has to be, as it is hereby, denied for lack of legal basis.