WHEREAS,
the government recognizes the important role of the shipping industry
in the economic development of the country;chanroblesvirtualawlibrary
WHEREAS, there is a need to increase the number of ocean-going shipping
vessels of Philippine registry; chanroblesvirtualawlibrary
WHEREAS, exporters and importers should be encouraged to patronize
Philippine flag vessels in order to effect foreign exchange savings;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested by the Constitution, do hereby
decree the following as part of the law of the land.
Section 1. Exporters of Philippine products shall be
allowed to deduct from their taxable income to the extent of one
hundred-fifty percentum (150%) of the amount, of overseas freight
expenses and arrastre charges in Philippine ports, provided that
shipments are made on board vessels of Philippine registry.
Section 2. Importers of goods that are to be
utilized as raw materials, intermediate products or for further
manufacturing or for resale shall be allowed to deduct from their
taxable income to the extent of one hundred-fifty percentum (150%) of
the amount of overseas freight expenses and arrastre charges in
Philippine ports on goods shipped from port of source to the
Philippines, provided that shipments are made on board vessels of
Philippine registry.
Section 3. Enterprises that are registered with the
Board of Investments shall be allowed to deduct from their taxable
income two hundred percentum (200%) of shipping costs incurred in the
transport of their product and raw materials to or from foreign ports,
provided that shipments are made on board vessels of Philippine
registry.
Section 4. The pertinent provisions of the National
Internal Revenue Code, Investments Incentives Act, Export Incentives
Act, and all laws, decrees, rules and regulations, or parts thereof,
inconsistent with any of the provisions of this Decree are hereby
repealed, amended or modified accordingly. chanroblesvirtualawlibrary
Section 5. This Decree shall take effect immediately.
Done in the City of Manila,
this 5th day of March, in the year of Our Lord, nineteen hundred and
seventy-five.
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