Taxability of Medicated Tique

June 29, 1966 BIR RULING NO. 029-66 Tancho Corporation 223 Marne Corner Harboard St. San Juan, Rizal Gentlemen : I have the honor to inform you that after analysis of the facts surrounding the manufacture and use of your "medicated" tique, this Office has arrived at the conclusion that said product, although medicated, is primarily for grooming of the hair and therefore, should be classified as a hair pomade, subject to the 50% sales tax imposed by Section 184 (c) of the National Internal Revenue Code. Accordingly, B. I. R. Ruling No. 371 s. of 1961, declaring your aforesaid product subject to the sales tax at the rate of 7% only, and all similar rulings are hereby revoked. Ruling No. 371 was promulgated on the strength of the certificates of the National Institute of Science and Technology and the Public Health Research Laboratories that Tancho Tique is a medicinal or pharmaceutical preparation. However, as heretofore pointed out, it has been ascertained that the product is used essentially to groom the hair and not to cure any disease of the scalp. In fact, the said product is advertised by you as hair pomade. In view thereof, you are advised to pay the 50% sales tax on your gross sales of the abovementioned product. However, in order to enable you to effect adjustments in your operations, this ruling shall be applied prospectively commencing with your sales for the month of August, 1966. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue This is to certify that the above ruling was duly signed by the Commissioner of Internal Revenue on June 29, 1966. PRISCILLA R. GONZALES Asst. Revenue Operations Head (Legal)