BIR says 2 firms to produce & donate alcohol to DOH

Published March 20, 2020, 12:00 AM

by manilabulletin_admin

By Jun Ramirez 

At least two big rubbing alcohol manufacturers have agreed to increase production and donate their product to the Department of Health (DOH) to help fight the spread of corona virus-19 (Covid-19), the Bureau of Internal Revenue (BIR) disclosed on Friday.

Bureau of Internal Revenue  (MANILA BULLETIN)
Bureau of Internal Revenue
(MANILA BULLETIN)

BIR Assistant Commissioner for Large Taxpayers Service (LTS) Manuel Mapoy did not identify the companies that availed themselves of the bureau’s new lenient policy in securing permit to produce the commodity.

“BIR Commissioner Caesar Dulay has come out with a memorandum cutting the procedure in getting a clearance to produce rubbing alcohol out of denatured alcohol to solve shortages due to increasing demand,” Mapoy said.

He explained that application for conversion of denatured alcohol to rubbing alcohol undergoes long process as it passes to other government offices like the Food and Drug Administration for testing and review.

According to the revenue official, all donation of rubbing alcohol to the government is tax deductible.

Earlier, Mapoy said “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 the product”

He said, however, that the denaturing of alcohol for sale as rubbing alcohol will be considered a regular transaction subject to excise tax under existing rules and regulations.

 
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