No Law Exempting Owners or Operators of Rice and Corn Mills from the Miller's Percentage Tax

September 24, 1959 BIR RULING NO. 474-59 Mr. Fermin Maglente Catituan, Malangas Zamboanga del Sur S i r : With reference to your letter dated March 25, 1959, addressed to the Secretary, Department of Finance, which was referred to this Office for reply, I have the honor to inform you that there is no law, for internal revenue purposes, exempting owners or operators of rice and corn mills with a capacity of 8 to 9 horsepower from the miller's percentage tax of 2% as prescribed in Section 189 of the National Internal Revenue Code. There was an attempt by Congress, sometime ago, to exempt the operators or proprietors of rice and corn mills, operating engines of 16 horsepower or less, from the percentage tax imposed by Section 189 of the Tax Code but this proposed exemption or amendment was vetoed by the President of the Philippines. It may be stated, in this connection, that Section 4 of Regulations No. 7, otherwise known as the "Rice and Corn Mills Regulations", provides that in case palay or corn is milled for compensation, the 2% tax shall be charged to the owner of the said palay or corn milled and shall be withheld by the proprietor or operator of the rice and corn mill. However, if your father fails to charge and withhold the tax from the owners of the cereals milled, he shall be held liable for the payment thereof. cdta Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue