WHEREAS,
the incentives granted by the Board of Investments under Republic Act
No. 5186, Republic Act No. 6135 and Presidential Decree No. 1159, as
amended, are subject to certain limitations in period of availment as
well as rates of tax exemptions prescribed therein, or imposed by other
laws;chanroblesvirtualawlibrary
WHEREAS, there are meritorious cases of particular firms/specific
industries contributing to the national economy and general welfare for
which continuation of incentives beyond the prescribed availment period
or higher rates of tax exemptions may be necessary; and
WHEREAS, some incentives may from time to time need to be altered or
modified in order to make them more responsive to encourage investments
in desirable business activities and to the needs of the economy; chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree the following:cralaw:red
Section 1. Section 15 of Republic Act No. 5186 is
hereby amended by the addition of subsections "q" and "r", which shall
read as follows:cralaw:red
"q. Recommend to the President in meritorious cases,
the liberalization of incentives granted by the Board for particular
firms or specific industries under Republic Act No. 5186, Republic Act
No. 6135, and Presidential Decree No. 1159; the President may in the
interest of national socio-economic development, general welfare and/or
national security liberalize incentives for such particular firms or
specific industries by: (1) extending the period of availment of
incentives, which may be enjoyed only for a limited period; or (2)
increasing the rates of tax exemptions prescribed for enterprises
registered with the Board.
"r. Recommend to the President, who, in the interest
of general welfare and development, may eliminate, reduce or suspend
the enjoyment of any of the tax incentives administered by the Board of
Investments provided that such reduction shall not affect firms
previously registered or approved by the Board prior to such
reduction." chanroblesvirtualawlibrary
Section 2. Section 3(c) of Republic Act No. 6135 is
hereby amended to read as follows:cralaw:red
"Registered Export Trader shall mean any person, corporation or
partnership or other entities organized and existing under Philippine
laws (1) registered with the Board in accordance with this Act and (2)
engaged or proposing to engage in the sale abroad of export products
bought by it from one or more export producers.
Section 3. Export producers and export traders
registered with the Board of Investments shall be automatically
registered with the Philippine Export Council for the sales tax
incentives granted to export transactions of producers and traders
registered with that Council under Presidential Decree No. 1469.
Section 4. Any and all laws, decrees, rules and
regulations or parts thereof inconsistent herewith are hereby repealed
or modified accordingly.
Section 5. This Decree shall take effect immediately.
DONE in the City of Manila,
this 11th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
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