Dealer of Lime Subject to Annual Fixed Tax of P200 and to the 1.5% Subsequent Sales Tax

June 17, 1986 BIR RULING NO. 076-86 165 (B) 039-85 076-86 Gentlemen : This refers to your letter dated March 19, 1986 stating, among others, that your company is engaged in the handling and marketing of lime products; that you are buying limestones from mining claim owners; that these limestones go through a simple process of heating by fire to remove moisture and impurities before breaking them into small sizes (by manual pounding) according to specification set by your customers; that presently, a big government corporation engaged in steel production is interested in using your lime because of its high quality, which meets the standards of steel product; and that this is both an opportunity for you to go into full blast operation and provide employment while helping our economy achieve greater productivity especially at this time. Based on your representation, you now request information as to whether you are subject to any percentage tax. In reply, I have the honor to inform you that under the foregoing facts, you are considered a dealer of lime subject to the annual fixed tax of P200.00 and to the 1.5% subsequent sales tax prescribed under Sections 161(1) and 165(B) of the Tax Code, as amended. cdti Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner