Taxability of Medicated Tique Considered as Medicinal and Pharmaceutical Preparation

September 19, 1966 BIR RULING NO . 033-66 Miss Julia A. Amargo Certified Public Accountant 346 Pureza, Sta. Mesa M a n i l a M a d a m : This refers to your letter dated September 7, 1966 requesting in behalf of your client, Tancho Corporation, reconsideration of BIR Ruling No. 66-029 which subjects your client's product, Tancho Medicated Tique to the 50% sales tax imposed in Section 184 (c) of the Tax Code. Among the evidence submitted in support of your request for reconsideration are: (1) a report and certification from the National Institute of Science and Technology that Tancho Tique is medicated pomade based on its formula composition: Cholesterol 5.05%, Cystine 2.15%, Ethynyl Estradiol 0.025% in a pigmented, perfumed lanolin and castor oil wax base; and (2) a photostat copy of an analysis made by Prof. Saburo Komori of the Department of Chemist, Faculty of Engineering of the Osaka University, Japan, attesting to the fact that the presence of cholesterol, ethynyl-estradiol and cystine gives nourishment and luster to the hair and prevents from snapping off and thinning and makes it stronger and prevents dandruff. It would thus appear that your client's product, Tancho Medicated Tique is a medicinal or pharmaceutical preparation. In view thereof, this Office honestly believes as it hereby holds that Tancho Medicated Tique is subject only to the 7% sales tax prescribed in Section 186 of the Tax Code. cdll This supersedes BIR Ruling No. 66-029, s. of 1966. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue