BIR Ruling No. 242-82

September 2, 1982 BIR RULING NO. 242-82 198-00 000-00 242-82 Consolidated Plywood Industries, Inc. Brickwood Bldg., Km. 7 Lanang Davao City Attention: Mr . Raymundo S . Bala Office Manager Gentlemen : This refers to your letter dated March 1, 1982 requesting a ruling on the taxes you are supposed to pay on "Albizzia Falcataria" (Falcata) once harvested and eventually exported abroad. cdt You have represented that said Falcata is either planted or cultivated in your private land or on lands under a tree farm lease from the government. It appears also that you buy falcata from tree farmers which are planted and cultivated on their private lands or on lands under tree farm lease from the government. In reply, please be informed that your falcata tree raised, planted or cultivated on your private land, and which is registered with the Bureau of Forest Development is an agricultural product subject to the 1% sales tax under Section 198 of the Tax Code, as amended. Falcata tree removed from public lands under a tree farm lease with the government is exempt from the forest charges (Sec. 280, Tax Code, as amended); it is likewise, an agricultural product subject to the 1% sales tax. If your falcata tree is exported, you are exempt from the sales tax, pursuant to Section 202(d) of the Tax Code. However, you remain subject to the annual fixed tax of P100.00 prescribed in Section 192(1) of the same Code. Falcata tree raised, planted or cultivated in private land of tree farmers which is registered with the Bureau of Forest Development as well as those removed by said farmers or lands under tree farm lease with the government, and which is purchased by you is also subject to the 1% sales tax, even if said falcata is exported by you. Moreover, your export sales of falcata tree purchased from farmers-homesteaders are subject to the graduated annual fixed tax imposed under Section 192(2) of the same Code. However, falcata tree removed from a forest concession is subject to forest charges. Very truly yours, TOMAS C. TOLEDO Acting Commissioner