Beverages and Their Concentrates Intended for Consumption as Drink Subject to 10% Sales Tax
BIR Ruling No. 082-86 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jun 12, 1986
Full text
June 12, 1986 BIR RULING NO. 082-86 161 (1) 000-00 082-86 Gentlemen : In reply to your letter dated February 14, 1986, please be informed that under Section 165(A)(3)(b) of the Tax Code as amended by P.D. No. 2031, beverages and concentrates thereof, whether in liquid, powder or granulated form, intended for consumption as a drink, including but not limited to processed coffee, cocoa, tea or ginger, are considered essential articles subject to 10% sales tax. Accordingly, as manufacturer of Spanish chocolates which are boiled for drinking, you are liable to an annual fixed tax of P200.00 and 10% sales tax pursuant to Sections 161(1) and 165(A)(3)(b) of the Tax Code, as amended. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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