Tax Exemption for Cassava Starch Produced from One's Own Plantation

October 23, 1969 BIR RULING NO. 014-69 UDAGRI Development Corporation 4th Floor, Doa Narcisa Bldg. 8751 Paseo de Roxas Makati, Rizal Attention : Mr . Wilfred Uytengsu President Gentlemen : This refers to your letter dated July 24, 1969 requesting that the cassava starch produced out of cassava taken from your own plantation be exempted from the 2% tax imposed in Section 189 of the Tax Code. Your request is premised on the fact that cassava being an agricultural product, the sales thereof whether in its original form or not by the producer is exempt from the sales tax pursuant to Section 188(b) of the Tax Code. In reply, I have the honor to inform you that the exemption provided for in Section 188(b) of the Tax Code refers to sales or exchanges of articles which would otherwise be subject to the sales tax imposed by Sections 184, 185 and 186 of the same Code. Clearly, this exemption provision cannot be invoked in the case of the cassava starch which is taxable under Section 189 or the Tax Code. LibLex Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue