Whether the Manufacturer of Packaging Materials for Food, Pharmaceutical and Detergent is Subject to 10% Sales Tax

December 18, 1986 BIR RULING NO. 276-86 163 (2) 165-86 276-86 Gentlemen : This refers to your letter dated August 19, 1986, stating that you are a manufacturer and wholesaler of packaging materials for food, pharmaceutical and detergent; and that you request confirmation of your opinion that the aforesaid packaging materials are subject to 10% sales tax. In reply, please be informed that among the essential articles subject to 10% sales tax are processed food products for human consumption, processed milk, creamers and dairy products, bread and bakery products, beverages and concentrates thereof whether in liquid, powder or granulated form intended for consumption as a drink, e.g., processed coffee, medicines, soaps and detergents. (Section 163(2), Tax Code as amended by Executive Order No. 36). Your packaging materials which are exclusively used as containers of said essential articles are also subject to the same rate of sales tax, i.e., 10%, provided that the purchasers thereof shall certify to you that the same shall be used exclusively as containers of said essential articles. (Section 163(2) of the Tax Code as amended, Section 6.11, Revenue Regulations No. 11-86). If the purchasers fail to issue the certification, you will be subject to 20% sales tax, pursuant to Section 163(4) of the Tax Code. However, with respect to the eveready batteries which are subject to the 20% sales tax, the packaging materials thereof are subject to the same rate of tax. i.e., 20%. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue