Taxability of a Repacker of Vegetable Lard and Starch (gawgaw)

October 6, 1959 BIR RULING NO. 504-59 Mr. Serafin T. Lorenzo 2-A Maria Clara Arcade Cubao, Quezon City S i r : This is with reference to your letter dated June 24, 1959, requesting information as to the taxability of the business described by you as follows: "A vegetable lard and starch (gawgaw) repacker buys his merchandise locally from local manufacturers who pay the percentage tax on their products upon disposing the same to the repacker. "The repacker in turn repackaged his merchandise into desired weights and sizes, and wrapped the same before disposing it either directly to the consumers, or to the retailers. "But, in disposing his merchandise, it is usually by means of peddling it by truck direct from his repacking shop to the neighboring areas and provinces. "In this way, is he subject to pay a fixed tax as a repacker and at the same time also subject to pay another fixed tax as a peddler based on his gross annual sales? or is it only the fixed tax based on his gross annual sales as peddler that is to be paid?" In answer thereto, I have the honor to inform you that a repacker of vegetable lard and starch (gawgaw) is subject to the graduated annual fixed tax (C-13) prescribed in paragraph 2 of section 182(A) of the National Internal Revenue Code, the initial payment of which is P10.00 and for the succeeding years, the tax will depend upon the gross sales during the preceding calendar year. The tax is payable for every business establishment maintained by him. A peddling outfit is considered, for tax purposes, a business establishment. Such being the case, every peddling outfit maintained must be provided with a distinct and separate C-13 privilege tax receipt. aisadc Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue