50% Advance Sales Tax — Essential Oil

September 30, 1981 BIR RULING NO. 188-81 194 (b) 012-79 188-81 RHEA Pharmaceutical Corporation 60 West Capitol Drive Pasig, Metro Manila Attention: Mr . Romeo R . Roa Vice President & General Manager Gentlemen : This refers to your letter dated June 17, 1981, requesting for a ruling that your importation of 100 kilos of Essential Oil commercially described as Compound V 112.777, used exclusively in the manufacture of rubbing alcohol, be subject only to the 10% advance sales tax with 25% mark-up. In reply, I regret to inform you that your request cannot be granted for lack of legal basis. Essential Oil is considered as similar or analogous to the articles enumerated in Section 194(b) of the Tax Code, pursuant to Department Order No. 17-78 dated June 20, 1978. Accordingly, your importation of the above-mentioned oil is subject to the 50% advance sales tax based on landed cost thereof plus 100% mark-up pursuant to Section 193(b) in relation to Section 194(e) both of the Tax Code of 1977. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner