Tax Imposed on "Gravel and Sand" Business

June 29, 1959 BIR RULING NO. 312-59 Mr. Vicente P. Castro No. 5 Cartimar Avenue Pasay City S i r : Reference is made to your letter of even date requesting information as to whether or not your intended "Gravel and Sand" business is subject to the 7% sales tax. You further elaborated on the mode of operation of said business, to wit: "In view of the difficulty of purchasing gravel and sand from producers themselves, you intend to get the same directly from river beds." In reply thereto, I have the honor to inform you that under the circumstances you are a producer of gravel and sand, as such, you are subject to the fixed tax of P20.00 per annum and to the 7% sales tax on your monthly gross sales, pursuant to sections 182(a)(1) and 186 both of the National Internal Revenue Code. cdi Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue