10% Advance Sales Tax - Skimmed Milk Pad Buttermilk Powder

March 27, 1979 BIR RULING NO. 014-79 10% Advance sales tax skimmed milk pad buttermilk powder This refers to your letter dated January 12, 1979, written for and in behalf of Holland Milk Products, Inc. requesting clarification on the correct sales tax rate applied on imported skimmed milk pad buttermilk powder. It is represented that your client, Holland Milk Products, Inc. is engaged exclusively in the manufacture of locally produced filled milks; and that skimmed milk powdered buttermilk powder serve as the basic raw materials for the production of evaporated filled milk, condensed filled milk and recombined filled milk. cdt In reply thereto, please be informed that locally processed milk is subject to 5% sales tax prescribed by Section 201(a) of the Tax Code of 1977, as amended by P.D. No. 1358. The raw materials used in the manufactured of said finished article are not, however, subject to the same rate of tax. It should be noted that raw material used in the manufacture of articles taxable under Section 201 of the Tax Code are not mentioned as subject to tax under the same provision. Such being the case, all imported raw materials like the abovenamed powders necessary for the local production of milk are subject to the 10% advance sales tax plus 25% mark-up, in accordance with Section 19 in relation to Section 193 (b) of the Tax Code of 1977, as amended.