BIR Ruling No. 060-65

May 28, 1965 BIR RULING NO. 060-65 Mr. Delfin Tumbaga 414 E. Zobel Street Makati, Rizal S i r : This refers to your letter of April 20, 1965 stating that you are an almaciga (resin) concessionaire with Forestry License No. O. M. 763-65; and that you believe the resin gathered and sold by you is either an agricultural or mineral product and, therefore, pursuant to the brochure published through the National Media Production Center, series of 1960, it is not subject to the 7% sales tax. LLjur On the basis of the foregoing facts, you now request opinion on whether or not you are subject to the tax in question. In reply, I have the honor to inform you that resin is neither an agricultural nor a mineral product. Quoted hereunder is a portion of Section 269 of the National Internal Revenue Code which reads: "Sec. 269. Charges on gums, resins, and other forest products . On gums, resins, rattan, and other products of the forest gathered or removed from any public forest or forest reserve, and not hereinabove provided for, there shall be collected a charge of ten per centum of the market thereof. . . .." The above-quoted provision of law clearly indicates that resin is essentially a forest product and not an agricultural or mineral product. As a licensed concessionaire, you are considered a producer of forest products, subject to the fixed annual tax of P20.00 and to the 7% sales tax prescribed by Sections 182(A)(1) and 186 of the National Internal Revenue Code. cdt Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue