BIR Ruling No. 186-83

October 25, 1983 BIR RULING NO. 186-83 S i r : This refers to your letter dated September 16, 1980 requesting a ruling as to the tax you should pay on the product resulting from the following process. "I buy centrifugal sugar from wholesale dealers with the intention of reselling the same to the public. In order to prepare it in a more readily marketable form. I boil the sugar in a vat and later pour the melted sugar into a wooden contraption. I continue mixing this melted sugar with ordinary spade mixing it with raw molasses in order to hasten the drying process into powder form. It is only the natural air and my continuous stirring with a spade that dry the melted centrifugal sugar. When it is fully dried in powder form, I repack it in bags of fifty (50) kilos before I sell the commodity in the market." In your letter dated May 28, 1982 you stated that the resulting product is the called muscovada sugar which is low grade but become palatable due to its molasses flavor. In reply, I have the honor to inform you that under the foregoing facts muscovado sugar is a manufactured products; hence, as a manufacturer of said products, you are subject to the annual fixed tax of P100.000 prescribed in Section 191(l) of the Tax Code of 1977, as amended and to the 10% sales tax imposed in Section 199(a) of the same Code. cdti Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue