BIR Ruling No. 159-83

September 12, 1983 BIR RULING NO. 159-83 Gentlemen : This refers to your letter dated January 15, 1982 requesting confirmation that your Presto, Celebration and Dairy Planet Ice Cream products are processed milk subject to the 5% sales tax. It is represented that the processing procedure of your ice cream products are as follows: Milk is prepared by reconstituting milk fat and skim milk powder with water. The resulting milk mix is further upgraded by adding more milk fat and milk proteins as required before being processed further through homogenization at 2000 to 2500 psi pressure and pasteurization at 85 C for 25 seconds followed by fast chilling. To prepare the different flavors, the milk is added with fruit preserves or flavors to suit the taste. Then fast freezing is accomplished through a special freezer to have specially frozen processed milk commonly referred to as ice cream. Amount of milk fat and milk protein added for every 100 parts milk mix: Milk Fat Milk Protein a) Presto 7.8 parts 4.0 parts b) Celebration and Dairy Planet 14.0 parts 2.7 parts c) Ice Milk 1.9 parts 8.2 parts In reply, please be informed that your abovementioned manufactured Presto, Celebration and Dairy Planet Ice Cream products are subject to the 10% sales tax under Section 199(a) of the Tax Code, as amended. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue