TAXATION RULING NO. ST 2289

ST 2289

SALES TAX : LOOFAHS

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FOI status:

PREAMBLE

Item 9 in the Third Schedule to the Sales Tax (Exemptions and Classifications) Act taxes at the rate of 10% goods for sale for cleaning purposes including sponges and synthetic sponges.

2. This office has recently had occasion to consider whether Loofahs come within item 9.

FACTS

3. A Loofah is the fibrous substance of the pod (fruit) of the Luffa plant and is used as a sponge or flesh-brush. The mature fruit is picked, skinned and washed in water. It is then dried and sold as it is or threaded onto a rope prior to sale.

RULING

4. Loofahs are considered to be sponges of the kind covered by item 9, Third Schedule. The threading of Loofahs onto a rope does not alter the product's identity as a sponge and Loofahs with rope are also covered by item 9, Third Schedule. Loofahs, with or without a rope attached, are taxable at the rate of 10%.

COMMISSIONER OF TAXATION
13 October 1986

References

ATO references:
NO 86/8912-1

Date of effect:
Immediate

Subject References:
SPONGES
LOOFAHS
CLEANING MATERIALS

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEM 9, THIRD SCHEDULE