Rate of Advance Sales tax Payable on the Importation of Potassium Nitrate

February 17, 1987 BIR RULING NO. 050-87 163 (2) 000-00 050-87 Gentlemen : This refers to your letter dated October 23, 1986 requesting a ruling as to the proper rate of advance sales tax payable by you on your importation of potassium nitrate, a fertilizer which is good in the production of citrus. It is represented (brochures submitted) that potassium nitrate primarily used in agriculture, is a pure binary fertilizer consisting entirely of nutrient elements namely 38% potassium and 62% nitrate; that it is a particularly suitable potassic fertilizer for citrus and other fruit-bearing trees and also applicable in the production of potatoes and vegetables and that it is a non-traditional fertilizer which is used by mango growers as flower inducer and at the same time as foliar fertilizer. In reply, please be informed that since potassium nitrate is a fertilizer, your importation thereof is subject to the advance sales tax at the rate of 10% in accordance with Section 162(c) of the Tax Code, in relation to Section 163(2)(m) of the same Code, as amended by Executive Order No. 36 which took effect on August 1, 1986. atdc Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner