Tax Liability of Filipino Retailers Inside Public Markets Dealing in Textiles, Footwears and Medicinal Products

February 7, 1960 BIR RULING NO. 086-60 Mr. Crispulo Sagisi Laoag, Ilocos Norte S i r : This is with reference to your letter dated January 25, 1960, requesting information whether or not the Filipino retailers inside public markets in the Philippines dealing in textiles, footwear, grocery and medicinal products are exempt from the payment of the fixed tax prescribed in Section 182(A)(2) of the Tax Code, as amended by R.A. 2376. In reply thereto, I have the honor to inform you as follows: Section 182 (C) (2), as amended provides as follows: "All Filipinos in public market places selling at retail all forms or kinds of food products, meat, fruits, vegetables, game, poultry, fish and other raw and/or cooked food products; Provided, that the term public market shall include tabu, talipapa and other barrio markets". Under the above-quoted provision of the law, it is clear that the exemption is limited to those dealing in food products. Such being the case, Filipino retailers inside public markets dealing in textiles, footwears and medicinal products are subject to the graduated annual fixed tax prescribed in section (A) (2) of the Tax Code. LLphil Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue