10% VAT on Corn Starch

May 4, 1988 BIR RULING NO. 181-88 100 000-00 181-88 Gentlemen : This refers to your letter dated February 26, 1988 requesting confirmation of your opinion that corn starch is an agricultural product in its original state and hence exempt from the value-added tax. (VAT). In reply, I have the honor to inform you that although corn starch is a by-product in the process of milling, it is not one of those considered in their original state for purposes of Section 103(b) of the Tax Code, as amended by Executive Order No. 273. It is noted in said provision that only corn grits, another by-product, is considered in their original state. Such being the case, corn starch which is a manufactured product and no longer in its original state is subject to 10% value-added tax imposed by Section 100 of the Tax Code, as amended by Executive Order No. 273. cdti Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner