Specific Tax on the Basestocks Purchased from BOI-Registered Local Refiners

April 19, 1988 BIR RULING NO. 152-88 145 (a) (1) 102-88 152-88 Gentlemen : This refers to your letter dated February 16, 1988, in effect, requesting a ruling that the specific tax on the basestocks purchased from BOI-registered local refiners such as the Philippine Petroleum Corporation (PPC) are already considered fully paid such that lubricating oils and greases manufactured out of these basestocks are no longer subject to the payment of any specific tax. In reply, please be informed that lubricating oils and greases produced from basestocks and additives on which the specific tax has already been paid are no longer subject to specific tax. (Sec. 145(a)(1), Tax Code, as amended by Executive Order No. 273). Accordingly, since under the foregoing facts, the specific tax on the basestocks purchased by you from PPC is considered fully paid, specific tax on the lubricating oils and greases produced out of said basestocks are, likewise paid. However, the sale of manufactured lubricating oils and greases is subject to the value-added tax of 10% pursuant to Section 103(d) both of the Tax Code as amended by Executive Order No. 273. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner