Tax Imposed on Sugar Mills

May 26, 1958 BIR RULING NO. 296-58 The Municipal Treasurer Culasi, Antique S i r : In reply to your letter dated March 26, 1958, a copy of which was received by this Office on May 4, 1958, I have the honor to inform you that the Court of Tax Appeals in CTA Case No. 163 entitled "Juan Ledesma vs. Collector of Internal Revenue" held that sugar mills producing muscovado sugar are not taxable as sugar centrals. This Office however, appealed from the said decision and until the aforesaid case is decided by the Supreme Court sustaining the decision of the lower court, this Office will enforce its standing ruling that sugar mills are subject to the 2% tax imposed in Section 189 of the National Internal Revenue Code. In view thereof, you are hereby instructed to continue collecting the fixed tax (C-18) and percentage tax (C-18(a) from operators of sugar mills. cdtech Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue