Correct Interpretation of Sec. 153 (f) of the Tax Code which Imposes Specific Tax on Thinners and Solvents

April 8, 1986 BIR RULING NO. 040-86 153-f 180-82 040-86 Gentlemen : This refers to your letter dated October 1, 1985 to the Prime Minister requesting, in effect, a ruling on the correct interpretation of Section 153(f) [now Sec. 128(c)(3)] of the Tax Code which imposes specific tax on thinners and solvents. In reply, I have the honor to inform you that only the thinners and solvents manufactured out of mineral oils or petroleum-based are subject to the specific tax imposed under the aforesaid provision of the Tax Code. (BIR Ruling dated August 27, 1985; BIR Ruling No. 180-82 dated September 2, 1982 and BIR Ruling dated August 8, 1974) Under Section 128(c)(3) of the Tax Code as amended by P.D. No. 1994, thinners and solvents are subject to a specific tax of P1.49 per liter and to an ad valorem tax of 25%. However, the thinners and solvents manufactured from materials other than mineral oils are subject to the sales tax. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner