10% Sales Tax on the Manufacture of Printing Inks

February 23, 1987 BIR RULING NO. 059-87 163 (2) 165-86 059-87 Gentlemen : This refers to your letter dated September 10, 1986 stating that your company is engaged in the manufacture of printing inks such as letterpress inks, offset inks, flexographic inks, gravure inks, coatings, varnishes, glue and adhesives, silkscreen inks and tin lithography inks, that the same are used by your customers as raw materials in the manufacture of crown caps, cannisters, food packages and medicine packs, and that you want confirmation of your opinion to the effect that you, as supplier of said raw materials, are subject only to 10% sales tax. In reply, please be informed that your opinion is confirmed. Your aforementioned products which are used as raw materials in the manufacture of crown caps, cannisters, food products and medicine packs are also subject to the same rate of 10% under Section 163(2) of the Tax Code, as amended by Executive Order No. 36, provided that the purchasers thereof shall certify to you that the same shall be used exclusively in the manufacture of crown caps, cannisters, food packages and medicine packs. (Section 6.II, Rev. Regs. No. 11-86). If the purchasers fail to issue the certification you will be subject to 20% sales tax. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner