Rate of Advance Sales Tax Due on the Glass Containers

February 10, 1959 BIR RULING NO. 077-59 Peter & Company P. O. Box 216 Manila Gentlemen : Reference is made to your letter of the 6th instant, requesting information as to the rate of advance sales tax due on the glass containers, sample of which has been submitted therewith, imported by you for use as containers of hair cream. prcd In answer thereto, I have the honor to inform you that, as a rule, containers are considered raw materials and, therefore, cannot be regarded as part of accessory of the products to be contained therein. Such being the case, while hair cream is subject to the sales tax of 50%, your said importation is subject to the advance sales tax of 7% only. Nevertheless, in order to enjoy the privilege of deducting the cost of the containers from the selling price of the finished products, this Office has ruled that in cases of containers imported for use in the manufacture of products subject to the sales tax of 50% or 30%, as the case may be, the importer may pay an advance sales tax on such containers at the rate to which the finished products are subject. In the case, therefore, of the importation in question, you may pay the advance sales tax at the rate of 50%. This serves as authority for the Commissioner of Customs, Manila, to release the above-mentioned importation upon pre-payment of either 50% or 7% advance sales tax. LLpr Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue