AMENDING THE NATIONAL INTERNAL REVENUE CODE OF 1977, AS AMENDED, BY ADDING NEW SECTIONS TO TITLE VII AND TITLE VIII THEREOF.

• Number: Presidential Decree No. 1724
• Sections: 4

Preamble

WHEREAS, mineral and forest products have been greatly

affected by changes in international market conditions, and

WHEREAS, in order to provide a mechanism which is responsive

to such changes in international market conditions, and which could also be a

tool for economic and industrial policies, it is necessary that the National

Internal Revenue Code of 1977, as amended, be further amended accordingly.

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:

Section 1

SECTION 1. A new Section 259-A is hereby added to Title VII

of the National Internal Revenue Code of 1977, as amended, which shall read as

follows:

"SEC. 259 (a). Flexibility Clause. — In the

interest of the national economy and general welfare, the President, upon

recommendation of the Minister of both the Ministries of Finance and Natural

Resources, is hereby empowered to revise the rates of tax on and classification

of mineral products, as well as to prescribe the rates of tax in cases of

marginal mines requiring protection, assistance or incentives.

"The foregoing authority may be exercised by the President if any of the

following conditions exist:

“(a) Where, in the interest of economic development, it is necessary to

redirect expenditures or consumption patterns;

“(b) Whenever by reason of fluctuation of currency values and/or inflation or

deflation, the existing taxable base and rate levels are no longer realistic or

consistent with the current price levels;

“(c) When it is necessary to counter adverse action on the part of another

country or adverse international market conditions; or

"(d) When there is need to obviate unemployment and economic and social

dislocation.

"Before any recommendation is submitted to the President of the Minister of

finance and the Minister of Natural Resources pursuant to the provisions of this

section, a public hearing shall, whenever practicable, be held and interested

parties afforded a reasonable opportunity to be heard."

Section 2

SEC. 2. A new Section 28l-A is hereby added to Title VIII of

the same Code which shall read as follows:

"SEC. 281 (a) Flexibility Clause. — In the interest

of the national economy and general welfare, the President, upon recommendation

of the Minister of both the Ministries of finance and Natural Resources is

hereby empowered to revise the rates of tax on and classification of forest

products.

"The foregoing authorities may be exercised by the President if any of the

following conditions exist:

"(a) Where, in the interest of economic development, it is necessary to

redirect expenditures or consumption patterns;

"(b) Whenever by reason of fluctuation of currency values and/or inflation or

deflation, the existing taxable base and rate levels are no longer realistic or

consistent with the current price levels;

"(c) When it is necessary to counter adverse action on the part of another

country or adverse international market conditions; or

"(d) When there is need to obviate unemployment and economic and social

dislocation.

"Before any recommendation is submitted to the President by the Minister of

Finance and the Minister of Natural Resources pursuant to the provision of this

section, a public hearing shall, whenever practicable, be held and interested

parties afforded a reasonable opportunity to be heard."

Section 3

SEC. 3. This Decree shall take effect immediately.

Done in the City of Manila, this 18th day of September, in the year of Our

Lord, nineteen hundred and eighty.

(Sgd.) FERDINAND E. MARCOS

President of the

Philippines

By the President:

(Sgd.) JUAN C. TUVERA

Senior Presidential

Assistant