WHEREAS,
the continued development of the Surigao Mineral Reservation has become
more important 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, has expired on
December 31, 1979; and
WHEREAS, in view of increased costs of operation, particularly to fuel,
the development of the Surigao Mineral Reservation cannot be pursued
unless the tax exemptions originally granted to the operator are
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 amendment of Paragraph (1) of Section 6 of
Republic Act No. 1828, as amended, as follows:cralaw:red
Section 1. Paragraph (1) of Section 6 of Republic Act
No. 1828, as amended, is hereby further amended to read as
follows: chanroblesvirtualawlibrary
(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 pesos (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, from January 1,
1980 to December 31, 1981, 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
used 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 operator for
failure to effect such production, and/or reach certain levels of
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. chanroblesvirtualawlibrary
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 & Industrial Corporation and all other laws,
decrees, executive orders, or parts thereof, inconsistent with this
Decree are hereby repealed, modified and/or amended accordingly.
Presidential Decree No. 1662 is hereby revoked.
Section 3. This Decree shall take effect immediately.
Done in the City of Manila,
this 21st day of August, in the year of Our Lord, nineteen hundred and
eighty.
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