Correct Rate of Tax on the Business of Buying and Selling Poultry, Hogs and Swine, and the Process of Raising the Same for Marketable Purposes

June 17, 1987 BIR RULING NO. 165-87 164 193-86 165-87 Gentlemen : This refers to your letter dated April 23, 1987 requesting a ruling on the correct rate of tax on your business of buying and selling poultry, hogs and swine, and the process of raising the same for marketable purposes. In reply, please be informed that poultry, hogs and swine purchased by you are classified as agricultural food products. Your resale thereof is still considered a subsequent sale of agricultural product in its original state and therefore, subject to the percentage tax at 0% rate. (Sec. 164, Tax Code, as amended by Executive Order No. 36). In other words, you are not subject to the 1.5% tax on subsequent sale. However, you remain subject to the C-13 graduated annual fixed tax imposed by Section 161(2) of the Tax Code. (Revenue Memorandum Circular No. 2-86). Moreover, your original sales of poultry, hogs and swine raised by you are subject to the 0% tax. (Sec. 163(3), Tax Code). In other words, you are not also subject to the percentage tax on said sale. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner