BIR Ruling No. 065-80

December 22, 1980 BIR RULING NO. 065-80 199-00 039-80 65-80 Philippine Association of Feed Millers, Inc. R-302 Portrade Building 430 E. Rodriguez Sr. Blvd. Cubao, Quezon City Attention : Mr . Jose S . Limjap President Gentlemen: This refers to your letter dated October 15, 1980 requesting that the 5% advance sales tax be made applicable to the importations by your members of raw materials and other ingredients used in the manufacture of animal feeds. In reply, I have the honor to inform you that poultry, swine and cattle feeds are subject to the 5% sales tax prescribed by Section 201(f) of the Tax Code, as amended by P.D. 1358. However, the raw materials used in the manufacture of said finished articles are subject not to the same rate of tax, but to the 10% advance sales tax based on the landed cost plus 25% mark-up under Section 199, in relation to Section 193(b) of the Tax Code, considering that the raw materials used in the manufacture of articles taxable under Section 201 of the Tax Code are not mentioned as subject to tax under the same provision. (BIR Ruling No. 036-80 dated April 24, 1980). On rulings dated December 27, 1973 and May 31, 1978 to Mabuhay Feeds, Inc. and Universal Robina, Inc., respectively, cannot be cited as basis of your request, on the ground that the importations covered by said rulings were made prior to the effectivity of P.D. No. 1358 amending the sales tax law. Very truly yours, RUBEN B. ANCHETA Acting Commissioner