Non-exemption from Specific Tax of the Philippine Pharmaceutical Manufacturing Association

June 25, 1958 BIR RULING NO. 342-58 2nd Indorsement Respectfully returned to the Honorable, the Secretary of Finance, Manila. Pursuant to Section 128 of the Tax Code, as amended, domestic alcohol of not less than 180 degrees proof (90% absolute alcohol) may, when denatured, be withdrawn from a registered distillery or bonded warehouse without the prepayment of the specific tax prescribed in Section 133 of said Code, if the same is to be used in an industry. In the case of La Tondea, Inc. vs. Collector (C.T.A. Case No. 182, December 16, 1957), the Court of Tax Appeals had occasion to rule on the exempting provision of said Section 128. In that case, it was held that the exemption under Section 128 refers to domestic denatured alcohol used in the operation of industries and not to denatured alcohol to be used merely as an ingredient in the manufacture of another product. cdti In view of the foregoing, the request of the Philippine Pharmaceutical Manufacturing Association that "alcohol for pharmaceutical manufacturing or medicinal purposes" be exempted from the specific tax cannot be granted. (SGD.) JOSE P. TRINIDAD Acting Commissioner of Internal Revenue