Bureau of Local Government Finance Opinion

April 13, 1993 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 2nd Indorsement Respectfully returned to the Municipal Treasurer of Paraaque, Metro Manila his within 1st Indorsement dated March 31, 1992 relative to the letter dates March 29, 1993 of Ms. Linda Potogan, Accountant, Liana's Supermarket, Vi-Mart Complex Sucat, that municipality. It appears that Ms. Potogan is claiming that Liana's Supermarket is liable to pay the business tax provided doe under Sec. 143(c) of RA 7160, as implemented by Art. 232(c) with reference to the rates prescribed in subsections (b) and (d) of the implementing Rules and Regulations (IRR) which provides as follows: "Art. 232. Tax on Business . The municipality may impose taxes on the following businesses: "xxx xxx xxx "(c) On exporters, and on manufacturers, millers, producers, wholesalers, distributors, dealers, or retailers of essential commodities enumerated hereunder at a rate not exceeding one-half (1/2) of the rates prescribed under subsections (a), (b) and (d) of this Article: "(1) Rice and corn; "(2) Wheat or cassava flour, meat, dairy products, locally manufactured, processed or preserved food, sugar, salt, and other agricultural, marine, and fresh water products whether in their original state or not; "(3) Cooking oil and cooking gas; "(4) Laundry soap, detergents, and medicine; "(5) Agricultural implements, equipment and post-harvest facilities, fertilizers, pesticides and other farm inputs; "(6) Poultry feeds and other animal feeds; "(7) School supplies; and "(8) Cement" (underlining supplied) In this connection, it is the view of this Department that essential commodities specifically enumerated in the abovequoted provisions are the only commodities that shall enjoy the rate of business tax not exceeding one-half (1/2) of the rates prescribed under subsection (b) for wholesalers and (d) for retailers, as the case may be, under consideration. Stated otherwise, if goods other than those enumerated under Art. 232 (c) are sold by the same establishment, the gross receipts therefrom should be computed separately under the pertinent schedule of the governing tax ordinance. By Authority of the Secretary: LORINDA M. CARLOS Executive Director Bureau of Local Government Finance