WHEREAS,
the continued development of the Surigao Mineral Reservation is of
utmost importance to the national economy; chanroblesvirtualawlibrary
WHEREAS, the tax exemption granted to the operator under Paragraph (1)
of Section 6 of Republic Act No. 1828, as amended, will expire on 31
December 1981; and
WHEREAS, in view of the unabated increases in the cost of fuel oil and
continued depressed world prices of nickel and cobalt, the development
of the Surigao Mineral Reservation, cannot be pursued unless the tax
incentives granted to the operator are further extended.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
decree and order the further amendment of paragraph (1) of Section 6 of
Republic Act No. 1828, as amended, as follows: chanroblesvirtualawlibrary
Section 1. Paragraph (1) of Section 6 of Republic Act
No. 1828, as amended, is hereby further amended to read as follows:cralaw:red
(1) The operator shall be paid for services rendered
and expenditures incurred beginning with the end of the first year
after the effective date of the contract the sum of one peso (P1.00)
per year, and the operator shall receive by way of additional
compensation, an amount equivalent to a portion of the gross annual
receipts, from all minerals, mineral and metal products, and
by-products resulting from the operation, processing, and disposition
thereof computed such that the Government shall retain not less than
three and one-half per centum of the gross annual receipts,
f.o.b. point of exports: Provided, That the operator shall, until
December 31, 1983, be exempt from all taxes, duties, fees and charges,
both national and local, directly payable by it for any work or
activity, equipment, machinery, materials, instruments, supplies,
accessories, structures, buildings, lands, improvements, and/or other
properties directly connected with or needed and to be used or being
exclusively in the operation, other than those provided in this Act and
except those fees and charges that are imposed for work or services
actually rendered to the operator; Provided, however, That the operator
shall put the area or areas covered by the contract into actual
production within five years from the effective date of the contract.
Thereafter, penalties may be applied against the contractor for failure
to effect such production within specific time period, as may be agreed
upon; And Provided, further, That exemptions from taxes shall not
extend to taxes due from contractor's personnel in their personal
capacities.
Section 2. All provisions of Republic Act No. 1828,
as amended, the Memorandum of Agreement and the Operating Contract
dated July 3, 1968 executed between the Republic of the Philippines and
Marinduque Mining and Industrial Corporations and all other laws,
decrees, executive orders, or parts thereof, inconsistent with this
Decree are hereby repealed, modified and/or amended accordingly.
Section 3. This Decree shall take effect immediately.
Done in the City of Manila,
this 16th day of January, in the year of Our Lord, nineteen hundred and
eighty-one.
|