Applicable Rate of Percentage Tax on Manufactured Polystyrene Foam Food Boxes and Trays

December 10, 1987 BIR RULING NO. 395-87 163 000-00 395-87 Gentlemen : This refers to your letter dated May 25, 1987 requesting a ruling on the rate of percentage tax applicable on your manufactured polystyrene foam food boxes and trays whose exclusive application are as follows: a. Single service food containers for hamburger and spaghetti; b. Food tray for fruits and products of fish, meat and pastry; and c. Trays for eggs. In reply, please be informed that for selling hamburger, spaghetti, meat and pastry in restaurants, you are subject to 4% caterer's tax pursuant to Section 172 of the Tax Code, as amended. Accordingly, the packaging materials are considered ordinary articles subject to 20% rate of sales tax pursuant to Section 163(4) of the same Code. However, eggs and fish are considered agricultural products in their original state subject to 0% rate of tax. Accordingly, the packaging materials therefor, are subject to 10% sales tax pursuant to Section 163(2) of the Tax Code, as amended. [BIR Ruling No. 157-87, dated June 5, 1987.] cdta Very truly yours, (SGD.) EUFRACIO D. SANTOS Officer-in-Charge