Sales of a Drug Store Under S-1 License

May 5, 1958 BIR RULING NO. 267-58 Mrs. Concepcion Garingalao Guimbal, Iloilo M a d a m : In reply to your letter dated January 10, 1958, I have the honor to inform you that the sales of a drug store under its S-1 license are not considered for purposes of the graduated fixed annual tax. If the sales of the drugstore from general merchandise is less than P2,000.00 during the proceeding calendar year, it is exempt from the graduated fixed annual tax (C-13) for the succeeding year. It may be stated in this connection, however, that an S-1 license covers only the sale of exempt narcotic preparations defined by Section 7 of Republic Act No. 953, the Narcotic Drug Law. Vino de Quina y Cacao is considered a medicinal preparation and not an intoxicating beverage. A distinct privilege tax-receipt is not required for the sale of said articles. prll Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue