Sales Taxes to Which a Dealer in Lumber is Subject

June 20, 1958 BIR RULING NO. 330-58 The Municipal Council Naval, Leyte Gentlemen : With reference to Resolution No. 40 of that Council requesting, among others, information as to the sales taxes to which a dealer in lumber is subject, I have the honor to inform you as follows: A lumber dealer, that is one who merely purchases lumber for the purpose of resale, is subject only to the graduated annual fixed tax prescribed in Section 182(A)(2) of the National Internal Revenue Code. A person who sells lumber manufactured from logs of his own production is subject to the 7% tax prescribed in Section 186 of the aforesaid Code. The said tax is based on the gross selling price of the lumber without deduction. In the case of sawmill operators or proprietors who buy logs for the purpose of cutting and/or sawing them into lumber, the sales tax is computed on thirty-three and one-third percentum (33-1/3%) of the gross cost of the logs purchased by them in any given month intended for manufacture, pursuant to the aforesaid Section 186 of the Tax Code. Very truly yours, (SGD.) JOSE P. TRINIDAD Acting Commissioner of Internal Revenue