Taxability of a Manufacturer of Boxes Out of Lumbers or Logs

October 16, 1968 BIR RULING NO. 025-68 Mr. Luis Gonzales c/o 38-40 Mercado St. Zamboanga City S i r : In reply to your letter dated June 4, 1968, I have the honor to inform you that a person who cuts lumber or logs into sizes constituting parts of a box and sold in bundles is a manufacturer subject to the annual fixed tax of P20.00 and to the 7% sales tax prescribed by Section 182(A)(1) and 186 of the Tax Code, respectively. For purposes of the sales tax, raw materials used in the manufacture of the boxes are deductible from the gross selling price thereof, provided that said raw materials are subject to the same rate of tax as the boxes and said cost is duly established by the sales invoices of the sellers thereof. liblex Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue