BIR Ruling No. 116-65

October 5, 1965 BIR RULING NO. 116-65 The Petroleum Institute of the Philippines, Inc. 734 Philamlife Building M a n i l a Gentlemen : This refers to your letter dated June 23, 1965 relative to the taxability of aviation gasoline and other fuel oils sold to domestic and foreign airline companies. cdt In reply, I have the honor to inform you as follows: 1. Considering that the specific tax applies, among others, only to things manufactured or produced in the Philippines for domestic sale or consumption (Sec. 123, Tax Code), aviation gasoline and other fuel oils used in international flights are not subject to the tax. (BIR Ruling No. 65-079 July 12, 1965) 2. Aviation gasoline and other fuel oils used in domestic flights are subject to specific tax the same being used in the Philippines. The specific tax is a liability of the manufacturer and the same cannot be shifted to purchasers even if the said purchasers are franchise holders paying certain percentage of their gross income from operation in lieu of all other taxes. 3. Pursuant to the ruling contained in the 1st Indorsement of the Secretary of Finance dated May 10, 1965, importations by the PAL, FAIRWAYS, and Air Manila and similar franchise grantees of aviation gasoline and other fuel oils and other articles including aircrafts for use in their operations are exempt from the specific or compensating tax, as the case may be. All rulings heretofore issued which are inconsistent herewith are deemed superseded. Very truly yours, (SGD.) MISAEL P. VERA Acting Commissioner of Internal Revenue