Tax Imposed on Rubbing Alcohol

January 19, 1960 BIR RULING NO. 078-60 Anaco Trading 2137 F. Gonzales St. Cebu City Gentlemen : With reference to your letter dated August 18, 1959, I have the honor to inform you that rubbing alcohol is considered a medicinal preparation containing alcohol as chief ingredient and, as such, is subject to tax as such chief ingredient. Accordingly, the rubbing alcohol you manufacture is subject to the specific tax and not to the sales tax. (La Todea Inc. vs. Collector of Internal Revenue, C.T.A. Case No. 182). The question, therefore, of whether or not the costs of bottles, caps and labels and raw materials is deductible from the gross selling price of your rubbing alcohol does not any longer come in because your sale thereof is not subject to the sales tax. The alcohol content thereof is, however, subject to the specific tax. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue