Taxability of Essential Oils

June 24, 1958 BIR RULING NO. 339-58 Messrs. Ross, Selph, Carrascoso & Janda P. O. Box 781 Manila Gentlemen : This is with reference to the taxability of essential oils. cdt Webster's International Dictionary defines essential oils and essences as follows: "Any of a class of volatile odoriferous oils found in plants and imparting to the plants odor and often other characteristic properties. The essential oils are used in essences, perfumery, etc. and include many varieties of compounds." " Essence an alcoholic solution of an essential oil or the like; perfume; odor scent; or the volatile matter constituting perfume." From the above definitions, it is clear that essential oils are different from essences. While essences are of themselves already constituted as toilet preparations, essential oils, on the other hand, cannot as yet be considered as a toilet preparation. In view of the foregoing, this Office believes, as it hereby holds, that imported essential oils for use in the manufacture of toilet soap and other articles subject to 7% sales tax are subject to only 7% advance sales tax. The ruling contained in the letter of this Office dated May 5, 1958 to your client, the Philippine Manufacturing Company, is deemed revoked. LLpr Very truly yours, (SGD.) JOSE P. TRINIDAD Acting Commissioner of Internal Revenue