Taxability of Raw Rubber in Dried Form
BIR Ruling No. 587-88 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Dec 19, 1988
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December 19, 1988 BIR RULING NO. 587-88 103 (a) 532-88 587-88 M a d a m : This refers to your letter dated December 1, 1988 requesting, in effect, a ruling as to the taxability of raw rubber in dried form which is produced from latex in your rubber plantations. In reply, please be informed that coagulated rubber juice/sap or latex gathered from rubber plantation is an agricultural product. The transformation and/or processing of liquid latex (rubber juice/sap) into coagulated rubber latex is not considered manufacturing. (CIR vs. American Rubber Co., 18 SCRA 842) Accordingly, raw rubber in dried form produced from latex in your plantations is agricultural non-food product still in its original state; hence, exempt from VAT pursuant to Section 103(a) of the Tax Code, as amended by Executive Order No. 273. cdtech Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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