10% Advance Sales Tax — Manufacture of Poultry, Swine and Cattle Feeds

June 18, 1980 BIR RULING NO. 079-80 Eastern Brokerage Co., Inc. 208 Federation Center Muelle de Binondo M a n i l a Attention: Mr . Edgardo G . Visaya Vice-President Gentlemen : This refers to your letter dated May 16, 1980, requesting in behalf of your client, Glenn Merchandising Corporation, information as to the correct date of advance sales tax applicable on imported, Peruvian Fish Meal. In reply, please be informed that under Section 201(f) of the National Internal Revenue Code, as amended, poultry, swine and cattle feeds, whether imported or locally manufactured are subject to 5% sales tax. However, the raw materials used in the manufacture of said finished articles are not subject to the same rate of tax. Under the aforesaid section of the Tax Code, raw materials used in the manufacture of articles taxable thereunder are not subject to tax under the same section. Such being the case, the importation of your aforesaid client of fish meal, a raw material in the manufacture of poultry, swine and cattle feeds is subject to the 10% advance sales tax plus 25% mark-up pursuant to Section 193(b) in relation to Section 199, both of the Tax Code, as amended. cdti Very truly yours, RUBEN B. ANCHETA Acting Commissioner