Correct Rate of Tax to Be Imposed on Importation of Boars and Gilts (Male and Female Hogs) for Breeding Purposes

May 8, 1986 BIR RULING NO. 057-86 165 (a) (4) 000-00 057-86 Gentlemen : This refers to your letter dated March 10, 1986 requesting a ruling as to the correct rate of tax to be imposed on your importation of boars and gilts (male and female hogs) for breeding purposes. In reply, please be informed that the term "Agricultural products" is not limited to vegetables substances directly resulting from the tillage of the soil, but includes everything which serves to satisfy human needs which is grown upon the land, whether it pertains to the vegetable kingdom, or the animal kingdom, (Molina vs. Rafferty, 38 Phil. 167) Accordingly boars and gilts are agricultural products. (see also BIR Ruling dated January 7, 1975). In view thereof, this Office is of the opinion as it hereby holds that your importation of boars and gilts for breeding purposes is subject to the 0% compensating tax pursuant to Section 169 (formerly Section 204) of the Tax Code, as amended by P.D. No. 2031 in relation to Section 165(A)(4) of the Tax as amended by P.D. No. 2006. In other words, imported boars and gilts are not subject to compensating tax. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner