Publishing Republic Act No. 3704, Amending Sections 182 and 189 of the National Internal Revenue Code By Removing from the Purview of Section 189 Corn and Rice Mills and Subjecting Them to Tax Under Section 182 and Including Within the Purview of Section 189 Cassava Flour Mills

July 9, 1963 REVENUE MEMORANDUM CIRCULAR NO. 17-63 SUBJECT : Publishing Republic Act No. 3704, Amending Sections 182 and 189 of the National Internal Revenue Code By Removing from the Purview of Section 189 Corn and Rice Mills and Subjecting Them to Tax Under Section 182 and Including Within the Purview of Section 189 Cassava Flour Mills TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, there are quoted below provisions of Republic Act No. 3704 which amended Sections 182 and 189 of the Tax Code: "SECTION 1. Section one hundred eighty-two of the National Internal Revenue Code, as amended, is further amended by adding to paragraph (3) thereof a new subparagraph, hereinafter to be known as subparagraph (x), to read as follows: LexLib '(x) operators or owners of rice or corn mills shall be subject to an annual graduated fixed tax based upon total capacity per machine in accordance with the following schedule: "Corn mill, not exceeding one hundred cavanes per twelve hour capacity P 30.00 "Corn mill, exceeding one hundred cavanes per twelve hour capacity 45.00 "'Kiskisan' type, not exceeding one hundred cavanes of palay per twelve hour capacity 50.00 "'Kiskisan' type, exceeding one hundred cavanes of palay per twelve hour capacity 75.00 "'Cono', of not exceeding one hundred cavanes of palay per twelve hour capacity 200.00 "'Cono', of not exceeding two hundred cavanes of palay per twelve hour capacity 400.00 "'Cono', of not exceeding three hundred cavanes of palay per twelve hour capacity 600.00 "'Cono', of not exceeding four hundred cavanes of palay per twelve hour capacity 900.00 "'Cono', of not exceeding five hundred cavanes of palay per twelve hour capacity 1,300.00 "'Cono', of not exceeding six hundred cavanes of palay per twelve hour capacity 1,800.00 "'Cono', of not exceeding seven hundred cavanes of palay per twelve hour capacity 2,500.00 "'Cono', of not exceeding eight hundred cavanes of palay per twelve hour capacity 3,200.00 "'Cono', of not exceeding nine hundred cavanes of palay per twelve hour capacity 4,000.00 "'Cono', of over one thousand cavanes of palay per twelve hour capacity 4,800.00 "Sec. 2. The first paragraph of Section one hundred and eighty-nine of the National Internal Revenue Code, as amended, is further amended to read as follows: LLjur 'Sec. 189. Percentage tax upon proprietors or operators of rope factories, sugar centrals, coconut oil mills, cassava mills and desiccated coconut factories . Proprietors or operators of rope factories, sugar centrals, coconut oil mills, cassava mills and desiccated coconut factories shall pay a tax equivalent to two per centum of the gross value in money of all rope, sugar, coconut oil, cassava flour or starch, and desiccated coconut manufactured or milled by them, including the by-products of the raw materials from which said articles are produced or manufactured, such tax to be based on the actual selling price or market value of these articles at the time they leave the factory or mill warehouse: Provided, however , That this tax shall not apply to ropes, coconut oil, and the by-products of copra from which it is produced or manufactured, and desiccated coconuts it such oil, copra, by-products and desiccated coconuts shall be removed for exportation and are actually exported without returning to the Philippines, whether so exported in their original state, or as an ingredient or part of any manufactured article or product. "Sec. 3. This Act shall take effect upon its approval. "Approved, June 22, 1963." FEATURE OF THE AMENDMENT Under Section 1 of Republic Act No. 3704 which amends Section 182 of the Tax Code, operators or owners of rice or corn mills are now subject to an annual graduated fixed tax based on the aforequoted rates beginning July 1, 1963. However, inasmuch as this is an annual tax, they may pay only one-half (1/2) of the prescribed rates corresponding to the second semester of 1963, payment of which should be made on or before July 22 of this year. Under Section 2 of the aforequoted Act which amends Section 189 of the aforesaid Code, operators or owners of rice or corn mills are no longer liable to the 2% miller's tax starting June 22, 1963. However, they are subject to the payment of said tax on transactions covering the period from June 1 to June 21, 1963, payment of which should be made not later than July 22, of this year. Section 2 of the said law also changed the tax status of operators or owners of cassava flour mills. Formerly, they were considered ordinary manufacturers subject to seven per centum (7%) tax prescribed under Section 186 of the Tax Code. Beginning June 22, 1963, they are considered millers subject to two per centum (2%) tax under Section 189 of the same Code, as amended. It is understood that transactions covering sales of manufactured cassava flour from June 1 to June 21 are subject to the seven per centum (7%) manufacturer's tax payable not later than July 22, 1963. Administrative Schedules The fixed and percentage taxes provided for under this law shall be accounted for under the following schedules: cdpr Schedule & Per Per paragraph Annum Semester B-22 Owners or operators of corn mills Fixed tax per machine with 12-hour milling capacity not exceeding 100 cavanes P30.00 P15.00 (Sec. 183(A)(3)(x)) B-22(a) Owners or operators of corn mills Fixed tax per machine with 12-hour milling capacity exceeding 100 cavanes 45.00 22.50 (Sec. 183(A)(3)(x)) B-23 Owners or operators of rice mills of the "kiskisan" type Fixed tax per machine with 12-hour milling capacity not exceeding 100 cavanes 50.00 25.00 (Sec. 183(A)(3)(x)) B-23(a) Owners or operators of rice mills of the "kiskisan" type Fixed tax per machine with 12-hour milling capacity exceeding 100 cavanes 75.00 37.50 (Sec. 183(A)(3)(x)) B-24 Owners or operators of rice mills of the "cono" type Fixed tax per machine with 12-hour milling capacity not exceeding 100 cavanes 200.00 100.00 B-24(a) Owners or operators of rice mills of the "cono" type Fixed tax per machine with 12-hour milling capacity exceeding 100 cavanes but not exceeding 200 cavanes 400.00 200.00 B-24(b) Owners or operators of rice mills of the "cono" type Fixed tax per machine with 12-hour milling capacity exceeding 200 cavanes but not exceeding 300 cavanes 600.00 300.00 (Sec. 182(A)(3)(x)) B-24(c) Owners or operators of rice mills of the "cono" type Fixed tax per machine with 12-hour milling capacity exceeding 300 cavanes but not exceeding 400 cavanes 900.00 450.00 (Sec. 182(A)(3)(x)) B-24(d) Owners or operators of rice mills of the "cono" type Fixed tax per machine with 12-hour milling capacity exceeding 400 cavanes but not exceeding 500 cavanes 1,300.00 650.00 (Sec. 182(A)(3)(x)) B-24(e) Owners or operators of rice mills of the "cono" type Fixed tax per machine with 12-hour milling capacity exceeding 500 cavanes but not exceeding 600 cavanes 1,800.00 900.00 (Sec. 182(A)(3)(x)) B-24(f) Owners or operators of rice mills of the "cono" type Fixed tax per machine with 12-hour milling capacity exceeding 600 cavanes but not exceeding 700 cavanes 2,500.00 1,250.00 (Sec. 182(A)(3)(x)) B-24(g) Owners or operators of rice mills of the "cono" type Fixed tax per machine with 12-hour milling capacity exceeding 700 cavanes but not exceeding 800 cavanes 3,200.00 1,600.00 (Sec. 182(A)(3)(x)) B-24(h) Owners or operators of rice mills of the "cono" type Fixed tax per machine with 12-hour milling capacity exceeding 800 cavanes but not exceeding 1,000 cavanes 4,000.00 2,000.00 (Sec. 182(A)(3)(x)) B-24(i) Owners or operators of rice mills of the "cono" type Fixed tax per machine with 12-hour milling capacity exceeding 1,000 cavanes 4,800.00 2,400.00 (Sec. 182(A)(3)(x)) C-23 Owners or operators of cassava mills Fixed tax of 20.00 C-23 (a) Owners or operators of cassava mills Percentage tax of 2 per cent. (Sec. 189) Date of Effectivity Republic Act No. 3704 took effect on June 22, 1963, the date of its approval. Enforcement and Publicity Internal revenue officers and others charged with the enforcement of internal revenue laws are hereby enjoined to give this circular as wide a publicity as possible. aisadc (SGD.) JOSE B. LINGAD Acting Commissioner of Internal Revenue