Whether Natural Waxes and Artificial/Synthetic Waxes are Subject to the Payment of Specific Tax

March 3, 1994 BIR RULING NO. 069-94 145 (a) (3) 101 (a) 000-00 069-94 Aneco Industries Corporation 11 Victoria Hills Street San Francisco del Monte Quezon City Attention: Brig . Gen . M . Oxales (Ret . ) Vice-President Gentlemen : This refers to your letters dated November 3 and December 15, 1993 requesting, in effect, for a ruling as to whether or not natural waxes (carnauba wax and beeswax) and artificial/synthetic waxes (polyethylene wax and polyethylene glycol 400) not being petroleum based products, are subject to the payment of specific tax at P3.50/kg. under Section 145(a)(3) of the Tax Code, as amended. Laboratory analysis conducted by the Industrial Technology and Development Institute (ITDI), formerly National Institute of Science and Technology (NIST) under Laboratory Request Reference Nos. 11-93-003- D905-B, 11-93-003-0904-B, 11-93-003-0908-B and 11-93-003-D902-B disclosed that natural waxes (carnauba wax and beeswax) and synthetic/artificial waxes (polyethylene wax and polyethylene glycol 400) are not petroleum-based products. In reply, please be informed that under Section 145 (a) (3) of the Tax Code, as amended, pertinent portion of which reads: "Sec. 145. Manufactured Oils and Other Fuels . There shall be collected on refined and manufactured mineral oils and motor fuels, the following excise taxes which shall attach to the goods hereunder enumerated as soon as they are in existence as such: (a) For products subject to specific tax only: xxx xxx xxx (3) Waxes and petrolatum per kilogram, three pesos and fifty centavos; and xxx xxx xxx the articles/products to be taxed are petroleum-based products. Such being the case, since Carnauba wax, Beeswax, Polyethylene glycol 400 and Polyethylene wax are natural and synthetic waxes, and not petroleum-based products, they are not subject to the specific tax of P3.50 per kilogram. However, the importer of the said articles products shall be liable to pay the value-added tax (VAT) pursuant to Section 101 (a) of the same Code. cdtech Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue