Rate of Sales Tax Due and Payable on Plastic Bottles Used for Packaging Sanicolor Detergent

November 10, 1986 BIR RULING NO. 243-86 163 (2) 165-86 243-86 Gentlemen : This refers to your letter dated August 20, 1986, stating that you are engaged in the business of manufacturing plastic bottles; and that you are requesting a ruling as to the rate of sales tax due and payable on the said plastic bottles used for packaging the Sanicolor brand of detergent being manufactured by your customer. In reply, please be informed that inasmuch as detergent is classified as essential article taxable at the rate of 10%, the plastic bottles which you manufacture and are exclusively used as containers of said detergent are also subject to the same rate of sales tax i.e., 10% under Section 163(2)(i) of the Tax Code as amended by Executive Order No. 36, provided that the purchaser of the plastic bottles shall certify to you that the plastic bottles shall be used exclusively in the manufacture of detergent. (Section 163(2) of the Tax Code as amended; Section 6.II, Revenue Regulations No. 11-86). If the purchaser fails to issue the certification, said plastic bottles will be subject to the 20% sales tax. Very truly yours, (SGD.) ROMULO M. VILLA Acting Commissioner