Tax Imposed on Liquid Deodorizer Used to Remove Foul Odors in Hospitals and Theaters

August 12, 1960 BIR RULING NO. 342-60 Medical Research Laboratory, Inc. Polo, Bulacan Gentlemen : In reply to your letter dated August 4, 1960, I have the honor to inform you that the articles manufactured by you namely liquid deodorizer used to remove foul odors in hospitals and theaters, surgical liquid soap and liquid soap (gallon) are subject to the 7% sales tax prescribed in section 186 of the National Internal Revenue Code. The tax is computed on the selling price of the manufactured article less the cost of the raw materials used which are subject to tax under sections 186 and 189 of the Tax Code. The cost of the following raw materials are deductible from the selling price of the manufactured article: 1. Liquid Deodorizer Formalin Isoprophyll alcohol Isoprophyll alcohol for dilution Container (if sales tax has been paid thereon) 2. Surgical liquid soap (4 oz. bottle) Coconut oil Caustic Potash Hexachlorophene Bottle (if sales tax has been paid thereon) 3. Liquid Soap (gallon) Coconut oil Caustic Potash Foamole "G" Container (if sales tax has been paid thereon) cdtech Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue