WHEREAS,
there is a need to equalize the cost of fuel among those which are
generating electric power for residential, commercial and individual
uses and those manufacturing "city gas";chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the power vested in me by the Constitution, do hereby
order and decree:cralaw:red
Section 1. Any provision of law or local ordinance
to the contrary notwithstanding, the franchise tax payable by all
grantees of franchises to generate, distribute and sell electric
current for light, heat and power and for the manufacture, distribution
and sale of city gas shall two per cent (2%) of their gross receipts
received from the sale of electric current and from transactions
incident to the generation, distribution and sale of electric current
and of manufactured city gas.
Such franchise tax shall be payable to the Commissioner of Internal
Revenue or his duly authorized representative on or before the
twentieth day of the month following the end of each calendar quarter
or month as may be provided in the respective franchise or pertinent
municipal regulation and shall, any provision of the Local Tax Code or
any other law to the contrary notwithstanding, be in lieu of all taxes
and assessments of whatever nature imposed by any national or local
authority on earning, receipt, income and privilege of generation,
distribution and sale of electric current and of manufactured city
gas. chanroblesvirtualawlibrary
Section 2. Tariff Heading No. 27.09 of Sec. 104 of
the Tariff and Customs Code, as amended, is hereby further amended as
follows:cralaw:red
Tariff
Description Rate
Heading No. of
Articles of Duty
27.09 Petroleum oils and oils
obtained from
bituminous minerals, crude.
a. for use as fuel oil for the generation of
electric power and for the manufacture
of "city gas" Ad Val. 20%
b. Others Ad
Val. 10%
Section 3. Sec. 106 of the Tariff and Customs Code,
as amended, is further amended by inserting a new paragraph "b" and
relettering sub-paragraph (b), (c) and (d), thereof to (c), (d), and
(e), respectively, the new paragraph (b), of the said Sec. 106 to read
as follows:cralaw:red
"b. On Petroleum Oils and Oils Obtained from
Bituminous Minerals, Crude Eventually Used for Generation of Electric
Power and for the Manufacture of City Gas. — On petroleum oils and oils
obtained from bituminous materials, crude oils imported by non-electric
utilities sold, directly or indirectly, in the same form or after
processing, to electric utilities for the generation of electric power
and for the manufacture of city gas, a refund or tax credit shall be
allowed not exceeding fifty per cent (50%) of the duty imposed by law
upon such oils, which shall be paid or credited under such rules and
regulations as may be prescribed by the Commissioner of Customs with
the approval of the Secretary of Finance."
Section 4. All the savings realized by electric
franchise holders from the reduction of the franchise tax under Section
1 and tariff reductions and tax credits under section 2 and 3, shall be
passed on to the ultimate consumer. The Secretary of Finance shall
promulgate rules and regulations and devise a reporting system to carry
out the provisions of this Decree. Violation of this section or the
rules and regulations promulgated by the Secretary of Finance to
implement it shall be penalized by a fine of not more than P50,000.00
and imprisonment of not more than six (6) months. In addition, the
Secretary of Finance may order compulsory price or rate reduction,
which may be either prospective or retroactive in application. If the
offense is committed by judicial person, the manager or person in
charge of the management of the business or affairs thereof shall be
responsible therefor.
Section 5. This Decree shall take effect immediately.
DONE in the City of Manila,
this 30th day of January, in the year of Our Lord, nineteen hundred and
seventy-five.
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