BIR Ruling No. 134-62

November 27, 1962 BIR RULING NO. 134-62 Mr. Virgilio E. Gonzales B.I.R. Collection Agent Sabtang, Batanes S i r : Reference is made to your letter dated September 27, 1962, stating the following: "I have the honor to ask information from you directly about a matter pertaining to water transportation. Here in Sabtang, Batanes the only direct transportation that connect it to the main land by sailboat. This native sailboat are nailed together 3 to 5 meters long and 2 to 3 meters wide with 6 rowers up. My main question is "Is this kind of transportation subject to Fixed and Percentage tax? "Usually or once a week sailboat are hired to transport goods, person and other and they charge fare accordingly." In reply thereto, please be informed that under the facts quoted above, the owner or operator of the sailboat comes within the meaning of the term "persons who transport passengers of freight for hire" found in section 192 of the Tax Code, and, therefore, is subject to the fixed and percentage taxes prescribed in section 182(A)(1) of the same Code and said section 192. Attention, in this connection is however, invited to section 182(C)(1) of the Code which exempts from the fixed tax persons whose gross monthly sales of receipts do not exceed P200.00. aisadc Very truly yours, JOSE B. LINGAD Acting Commissioner of Internal Revenue