10% Sales Tax — Baby Oil Product

October 1, 1981 BIR RULING NO. 191-81 199-00 135-81 191-81 World-Wide Pharmaceutical, Inc. #3 Seattle Street, Cubao Quezon City Attention: Mr . Artemio Duyongco Manager Gentlemen : This refers to your letter dated June 19, 1981, requesting information as to the rate of tax applicable on the manufacture of baby oil. It is represented that your corporation is a domestic pharmaceutical corporation engaged in the manufacture of medicated rubbing ointment for colds; that you are going to manufacture baby oil under a brand name "Wow" using locally purchased pure white mineral oil as material; and that the uses of said baby oil are: for skin care of babies, for rubbing of newborn babies' scalp to soften and remove flakes, for rubbing babies body after bath to protect skin pores and to clean anus and genitals of babies to avoid skin irritation in the process of cleaning. In reply, I have the honor to inform you that based on the laboratory analysis conducted by this Office, the aforesaid baby oil product is mainly of white mineral oil base. Consequently, it is subject to the 10% sales tax prescribed in Section 199 of the Tax Code of 1977, as amended. cdtech Very truly yours, RUBEN B. ANCHETA Acting Commissioner