Forest Charge on Almaciga (Manila Copal) and Rattan (Split and Unsplit)

May 6, 1958 BIR RULING NO. 256-58 Mr. Alfonso N. Padua Puerto Princesa, Palawan S i r : In reply to your letter dated April 7, 1958, I have the honor to inform you that almaciga (Manila Copal) and rattan (split and unsplit) are classified as minor forest products, subject to the forest charge prescribed by Section 269 of the Tax Code which is ten per centum of the market value thereof as determined by the joint assessment of the Commissioner of Internal Revenue and the Director of Forestry. On the sales of almaciga and rattan, there is further due and payable a sales tax equivalent to 7% of the gross selling price thereof, without any deduction. Necessarily, costs of labor and transportation are not deductible. However, if the producer ordinarily sells his products in containers, such as boxes and jute bags, the cost of the latter may be deducted if they have already been subjected to the sales tax. If the producer himself manufactures his containers, the costs of the raw materials used in his manufacture of such containers may be deducted provided they have likewise been already subjected to the sales tax. LLjur Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue