BIR Ruling No. 080-82

March 15, 1982 BIR RULING NO. 080-82 199-00 000-76 080-82 Mr. Vicente O. Franco F & M Bakery Surigao City S i r : This refers to your letter dated April 2, 1979 requesting tax exemption under the provisions of the NACIDA law. Investigation disclosed that you are engaged in the manufacture of bread and cookies; that you are registered with the NACIDA under Certificate of Registration No. MMRI-01440 dated April 27, 1978; that your capitalization at the time of your registration is P35,325.53; and that your have 14 salaried employees. In reply, I regret to inform you that your request cannot be granted for the reason that the manufacture of bread and cookies is not one of the economic activities included within the term "cottage industry" which activities are enumerated in Section 11 of Republic Act No. 3470, as amended by Republic Act No. 5326 and Presidential Decree No. 817. It may be stated that food preservation is one of the economic activities enumerated in said law. However, the manufacture of bread and cookies cannot be classified as food preservation. In view thereof, your are subject to the fixed tax of P100.00 imposed in Section 192(1) of the Tax Code of 1977, of the same Code, as amended by LOI NO. 1144. cdtech Very truly yours, RUBEN B. ANCHETA Acting Commissioner