By Jun Ramirez
The Bureau of Internal Revenue (BIR) has shortened and simplified the procedure to get a permit to manufacture rubbing alcohol out of denatured alcohol.
BIR Commissioner Caesar Dulay took the move to address the problem of massive rubbing alcohol shortages due the demand in fighting coronavirus disease (COVID-19) infestation.
The BIR chief has instructed the large taxpayers service (LTS) to immediately come out with the guideline so that the market could be flooded with the product and help curb the spreading of the disease.
LTS chief Manuel Mapoy said the lenient policy will only be limited to manufacturers who will donate the product to the Department of Health.
He stressed that the donation will be tax deductible.
He said he has already instructed the excise tax division of the LTS to list down the names of those willing to participate in the program.
“The donor shall specify the volume of denatured alcohol to be treated as exempt from excise tax since the product conversion form part of the strategy to help solve the increasing demand for rubbing alcohol,” Mapoy said.
He pointed out, however, that the denaturing of alcohol for sale as rubbing alcohol will be considered a regular transaction subject to tax under existing rules and regulations.
Mapoy explained that the permit to manufacture rubbing alcohol requires tedious process as the application passes through various government agencies like the Food and Drugs Administration for testing and review.