BIR Ruling No. 058-82

March 4, 1982 BIR RULING NO. 058-82 198-00 122-81 058-82 Ms. Ruperta U. Pelayo Certified Public Accountant c/o P.O. Box 68 Davao City S i r : This refers to your letter dated July 13, 1981 requesting our opinion whether Letter of Instruction No. 753 suspended the implementation of Section 198 of the National Internal Revenue Code, as amended, imposing the 1% sales tax on agricultural products. In reply, please be informed that Letter of Instruction No. 753, temporarily suspended the imposition of the 1% sales tax on agricultural products under Section 198 and the fixed tax under Section 192(1) both of the Tax Code of 1977, as amended, on small farmers only , until the definition of a marginal farmer is drawn up and approved by the President of the Philippines. Accordingly, the imposition of said fixed and percentage taxes on agricultural products are not suspended insofar as non-marginal farmers are concerned. cdta This Office has ruled that "marginal farmers" refer to small, subsistence farmers and does not cover the affluent ones and those who are engaged in large-scale farming. (Revenue Memorandum Order No. 29-78). In this connection, the President under Letter of Instruction No. 1055 has defined a marginal farmer as an individual engaged in small scale subsistence farming, whose sales, barters, or exchanges of agricultural products produced by himself do not exceed a gross value of P20,000.00 per annum . Very truly yours, RUBEN B. ANCHETA Acting Commissioner