Tax Liabilities of the Manufacturers of Fireworks

June 5, 1958 BIR RULING NO. 321-58 The Provincial Revenue Officer (Thru the Regional Director Regional District No. 7) Cebu City S i r : With reference to the inquiry dated April 24, 1958 of Factory Agent Leoncio Arbiol, Tacloban City, which was referred to this Office under 1st Indorsement dated May 5, 1958 of Supervisor Benito D. Balangon, that city, you are informed as follows: cdt Pursuant to previous rulings of this Office, all kinds of fireworks are subject to the specific tax prescribed in Section 140 of the Tax Code, as amended, and mortar salvos being a kind or class of fireworks are, therefore, subject to said tax. In the light of the aforesaid ruling, and considering that "cuitis", be it the kind which produces a loud sound or which, instead of the sound, produces lights of varied colors, may properly be classified as fireworks, this Office is of the opinion and so holds that said article is subject to the specific tax imposed by said Section 140. In this connection, you are further informed that, in weighing fireworks for the purpose of computing the tax due thereon, all of the materials that go into the manufacture thereof have to be included, with the exception of the handles or props in the case of rocket fireworks, such as "cuitis". You are hereby instructed to advise Agents Arbiol and Balangon of this ruling, and to assess the respective tax liabilities of the manufacturers of fireworks in that district. LLpr Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue