Taxability of Small Stores Selling Liquors and Cigarettes and of Motor Vehicles Carrying Passengers for a Fee

April 12, 1967 BIR RULING NO. 015-67 Mr. Crispin M. Vinluan Bayambang, Pangasinan S i r : This refers to your letter dated August 4, 1966 stating among others, the following: "May, I think inquire, from your good office Sir, if there is any provisions of our Phil. Laws permitting rural areas, such as small stores, in the selling of liquors, and cigarettes, free of charge of municipal tax, or municipal permits? Are they exempted by our Phil. Laws? "Sir, are they not punishable by our Phil. Laws? If they don't pay their taxes regularly? Are jeeps, weapon carriers and jeepneys, which are of a mere services purposes, as what their plates states, are allowed to carry paying passengers? Are these J.T. & S plates, not a mere service purposes? Is there any provision of our Phil. Laws, permitting them to be used as a mere public utilities; Sir, may we know from your good offices, if there are such provisions of our Phil. Laws." In reply, I have the honor to inform you as follows: This Office is not aware of any exempting retail dealers of liquors and cigarettes from municipal taxation or regulation. It may be stated further that municipalities are now empowered by Republic Act No. 2264 know as the Local Autonomy Act to impose a tax on retail dealers of said articles. Sari-sari stores selling at retail liquors and cigarettes are, as the case may be, subject to the following internal revenue taxes, tax amount indicated being for the whole year: Retail liquors dealer (imported) P100.00 Retail vino dealer (domestic) 20 Retail dealer in fermented liquor (beer) 50 Retail tobacco dealer (cigar and cigarettes 16 A retail liquor dealer, however, who has paid the tax as such may also sell at retail liquors of domestic manufacture without paying the fixed tax for retail vino dealer. Any person subject to the payment of an internal fixed tax on business, other than manufacturers of articles subject to specific tax, who fails to pay the corresponding tax shall be punished by a fine of not exceeding P1,000.00 or by imprisonment for a term not exceeding 6 months, or both. (Sec. 208, Tax Code). Owners of motor vehicles who utilize their vehicles for the transportation of persons or goods for a fee are transportation contractors even if their vehicles are not registered for transportation purposes. Accordingly, they are subject to the fixed tax of P20.00 per year prescribed in Section 182(A) (1) of the Tax Code and to 2% tax on their gross receipts pursuant to Section 192 of the same Code. Very truly yours, (SGD). MISAEL P. VERA Commissioner of Internal Revenue