Tax Imposed on Polyethylene Glycol (Carbowax 6000)

September 3, 1990 BIR RULING NO. 166-90 145 (a) (3) 101 (a) 464-88 166-90 Gentlemen : This refers to your letter dated May 29, 1990 addressed to the Assistant Commissioner (Excise Tax Service), this Bureau, requesting him to reconsider the inclusion of Polyethylene Glycol (Carbowax 6000) from the list of petroleum based products subject to excise tax. In reply, I regret to inform you that your request cannot be granted for lack of basis. According to our laboratory report, Polyethylene Glycol is prepared by reacting Ethylene Glycol with Ethylene Oxide. Ethylene Glycol and Ethylene Oxide are produced by using Ethylene, a colorless gas recovered from refinery gases or by cracking natural gas and light hydrocarbon as a starting material. This shows that Polyethylene Glycol is a petroleum based product, hence, the same is subject to excise tax of P3.50 per kilogram pursuant to Section 145(a)(3) of the Tax Code as amended and to the 10% value-added tax under Section 101(a) of the same Code. Under Section 103(d), wax is not exempt from VAT. (BIR Ruling No. 464-88 dated September 26, 1988) aisadc Very truly yours, (SGD.) JOSE U. ONG Commissioner