Taxability of Johnson's Baby Cologne

November 9, 1988 BIR RULING NO. 535-88 138 (a) 304-87 535-88 Gentlemen : This refers to your letter dated September 29, 1988 requesting in behalf of your client, Johnson & Johnson, confirmation of BIR Ruling No. 59-81 dated March 30, 1981 which held that your client's product, Johnson's Baby Cologne, falls under the term "other preparations", that as the chief ingredient of the preparation is alcohol, a distilled spirit, the same is subject to specific tax as such distilled spirit, pursuant to then Section 138 of the Tax Code; that since the specific tax on the aforesaid alcohol has already been paid, no further specific tax is due and payable on the said product; and that no further percentage tax is due and payable on the same product. In reply, please be informed that the aforesaid then Section 138 which is the basis of the above ruling was renumbered as Section 121(c) by P.D. No. 1994 effective January 1, 1986 and again renumbered as Section 138(c) by Executive Order No. 273 effective January 1, 1988, quoted as follows: "(c) Medicinal preparations, flavoring extracts, and all other preparations except toilet preparations, of which excluding water, distilled spirits form the chief ingredient, shall be subject to the same tax as such chief ingredient." In other words, said provision is still in force since BIR Ruling No. 59-81 was rendered up to the present. Accordingly, as long that the present product, Johnson's Baby Cologne, is the same product of your client having the same alcohol content, this office hereby confirms that said ruling is effective and still applies to its present product. (See also BIR Ruling No. 304-87 dated September 24, 1987) However, said Johnson's Baby Cologne is subject to the value-added tax imposed by Section 100 of the Tax Code, in addition to the specific (excise) tax imposed by Section 138(c) of the same Code. (Sec. 126, Tax Code) cdt Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner