Rate of Sales Tax Due and Payable on Plastic Canisters and Bottles Used for Packaging Detergents

November 19, 1986 BIR RULING NO. 255-86 163 (2) 165-86 255-86 Gentlemen : This refers to your letter dated September 15, 1986 stating that you are a manufacturer and supplier of plastic containers for several detergent manufacturers; and that you are requesting a ruling as to the rate of sales tax due and payable by you on the plastic canisters and bottles used for packaging AJAX Cleanser and AJAX APC liquid, both detergents being manufactured by Colgate Palmolive Phils. In reply, please be informed that inasmuch as detergent is classified as essential article taxable at the rate of 10% the plastic canister and bottles which you manufacture and are exclusively used as containers of AJAX Cleanser and AJAX APC liquid 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 Colgate Palmolive Phils. shall certify to you that the plastic canister and bottles shall be used exclusively in the manufacture of said detergents. (Section 163(2) of the Tax Code as amended; Section 6.II Revenue Regulations No. 11-86). If the purchaser (Colgate Palmolive Phils.), fails to issue the certification, you will be subject to 20% sales tax. cdti Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue