Tax Imposed on Fish and Its By-Products

March 20, 1958 BIR RULING NO. 193-58 Mr. Enrique K. Manus Calumpang Bukid, Masbate S i r : In reply to your query dated October 17, 1957, I have the honor to inform you that from August 24, 1956 to June 21, 1957 fish and its by-products are subject to 5% sales tax, pursuant to Section 186 of the Tax Code, as amended by Republic Act No. 1612. From June 22, 1957, however, fish and its by-products are again exempt from tax, pursuant to subparagraph (b) of the first paragraph of Section 188, as amended by Republic Act No. 2025. Accordingly, the liability to the sales tax of fish products depend upon the date of the transaction. The deductibility of the cost of fish used by dried fish manufacturers for sales tax purposes shall depend upon whether or not it had been previously taxed. The answer to this question shall, therefore, depend upon the date when the purchase is effected. If effected during the period from August 24, 1956 to June 21, 1957, the cost is deductible provided it is duly established. If effected on and after June 22, 1957, it is not deductible. The cost of box containers is deductible provided that they have already been previously taxed and that the same is duly established. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue