10% Advance Sales Tax — Importation of Fertilizer

May 7, 1980 BIR RULING NO. 037-80 Fortune Tobacco Corporation Parang, Marikina, Rizal Attention: Mr . Florencio T . Santos Director Gentlemen : This refers to your letter dated September 10, 1979 (which was coursed through the Chairman, Philippine Virginia Tobacco Administration) requesting that your importation of 100 metric tons of sulphate of Potash to be distributed to the farmers and its costs to be offset by their produce, be exempted from the payment of advance sales tax. In reply, please be informed that your request cannot be granted for lack of legal basis. Consequently, your importation of the aforesaid fertilizer for distribution to tobacco growers who, in turn, pay you in the form of their produce, is subject to the 10% advance sales tax, the tax to be based on the landed cost thereof plus 25% mark-up pursuant to Section 193(b) in relation to Section 199, both of the National Internal Revenue Code, as amended. cdti Very truly yours, RUBEN B. ANCHETA Deputy Commissioner