BIR Ruling No. 068-82

March 5, 1982 BIR RULING NO. 068-82 199-00 000-76 068-82 Mrs. Angelina Alda Lao Wowie's Bakeshop & Mini Mart Cabreros Cor. Rizal Ave. Extension Cebu City M a d a m : This refers to your letter dated October 8, 1979 requesting tax exemption under the provisions of the NACIDA law. Investigation disclose that you are the operator of a bakeshop engage in the manufacture of bread and biscuits; that you started operation on April 25, 1979 with a capital investment of P10,000.00; and you are registered with the NACIDA under Certificate of Registration No. 07021 dated July 6, 1979. In reply, I regret to inform you that your request cannot be granted for the reason that the manufacture of bread is not one of the economic activities included within the term "cottage industry" which activities are enumerated in Section 11 of Republic Act No. 3470, as amended by Republic Act No. 5326 and Presidential Decree No. 817. It may be stated that food preservation is one of the economic activities enumerated in the said law. However, the manufacture or baking of bread cannot be classified as food preservation. In view thereof, you are subject to the fixed tax of P100.00 imposed in Section 192(1) of the Tax Code of 1977, as amended and to the 10% sales tax prescribed in Section 199 of the same Code. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner