Copra and Abaca Dealer Subject to the Graduated Annual Fixed Tax Imposed by Sec. 161 (2) of the Tax Code

June 24, 1986 BIR RULING NO. 090-86 165-B 000-00 090-86 S i r : This refers to your letter dated January 28, 1986 requesting information whether, as dealer of copra and abaca, you are subject to the 1.5% tax on subsequent sales. In reply, please be informed that since copra and abaca are agricultural products, the subsequent sale thereof shall be subject to the 0% rate of tax. (Section 165(B), Tax Code an amended by P.D. No. 2006) In other words, as dealer of copra and abaca, you are not subject to the 1.5% sales tax imposed by Section 165(B) of the Tax Code. Likewise, you are not subject to the annual fixed tax of P200.00 imposed by Section 161(1) of the Tax Code. However, you are subject to the graduated annual fixed tax imposed by Section 161(2) of the same Code. (Revenue Memorandum Circular No. 2-86) Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner