Tax Exemption Granted to Philippine Pharmaceutical Products (Magallanes, Cebu City)

February 17, 1958 BIR RULING NO. 118-58 MEMORANDUM FOR The Chief, Alcohol & Prohibited Drugs Division B.I.R., Manila This refers to the case of the Philippine Pharmaceutical Products, 292 Magallanes St., Cebu City. Upon investigation conducted by Drug Inspector Gloria S. Tamayo, it was found that said firm is engaged in the business of compounding medicinal products, such as Impedeine and Guanabis, which contain prohibited drugs. On the other hand, by a letter dated September 15, 1956 (copy of which forms part of the records of this case), the Secretary of Finance approved, in accordance with Republic Act No. 901, the application for tax-exemption of the aforenamed firm in respect to the manufacture of the medicinal products enumerated in said letter, among which are Impedeine and Guanabis. The exemption granted, which was to commence on June 23, 1956, includes the privilege tax on business as one of the taxes from which the firm is exempted. Under the above circumstances, and pursuant to Section 4 of Revenue Regulations No. V-38, the Philippine Pharmaceutical Products is exempt from the S-5(C) annual privilege tax of P72.00, imposed upon compounders, producers and manufacturers of narcotic drugs, on the Impedeine and Guanabis it compounded or manufactured on June 10, 1956. cdtech (SGD.) JOSE ARAAS Commissioner of Internal Revenue