Taxability of LPG Cylinders

October 20, 1967 BIR RULING NO. 040-67 Eastern Brokerage Co., Inc. Uy Yet Bldg., 163 Dasmarias St. M a n i l a Attention : Mr . Fermin Paloma Customs Broker Gentlemen : This refers to your letter dated October 9, 1967 requesting information as to the correct rate of sales tax due on imported LPG Cylinders. It is represented that LPG (Liquified Petroleum Gas) cylinders are metal gas containers which are used locally for gas appliances either for heating or cooling purposes; that gas appliances should necessarily have LPG cylinders as containers for their gas fuel, which are merely refilled with gas when empty; that they are the gas containers being distributed and refilled by the Esso Co. under the brand "Esso Gasul" and by Shell Co. under the name of "Shellane" among others; and that these cylinders are different from acetylene and oxygen cylinders in construction, and are not interchangeable in their uses. In reply, I have the honor to inform you that it appearing that the LPG cylinder is an accessory of gas stove which is subject to 30% sales tax, and considering that under the last paragraph of Section 185 any part or accessory of the articles mentioned therein shall be taxed at the same rate as the finished articles, the imported LPG cylinders are subject to the 30% advance sales tax based on the landed cost thereof, plus 50% mark-up pursuant to Section 183(b), in relation to Section 185(i), both of the Tax Code. prcd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue