IMPOSING AN ECONOMIC STABILIZATION TAX; PRESCRIBING PENALTIES FOR VIOLATIONS HEREOF AND FOR OTHER PURPOSES

• Number: Presidential Decree No. 1929
• Sections: 9

Preamble

WHEREAS, there is need to complement the stablization

measures adopted to counteract inflationary pressures as a result of the

increased peso earnings generated by the latest adjustment in the exchange rate

of the peso,

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, pursuant to the powers vested in me by the Constitution, do hereby

direct and ordain:

Section 1

SECTION 1. There shall be levied, assessed, collected and

paid, an economic stabilization tax in an amount equivalent to the difference

between the gross FOB value at the time of shipment based on the guiding rate at

the date of shipment and said gross FOB value at the rate of fourteen (P14.00)

pesos to one ($1.00) United States dollar, in accordance with the following

schedule:

Until

September 30,1984

—

30%

Until

December 31,1984

—

25%

Until

March 31,1985

—

20%

Until

June 30,1985

—

15%

Until

September 30,1985

—

10%

Until

December 31,1985

—

5%

Section 2

SEC. 2. The tax imposed herein shall be assessed by the

Bureau of Customs and collected by the Bureau through authorized agent banks of

the Central Bank of the Philippines, not later than thirty (30) days from date

of shipment.

Section 3

SEC. 3. In case the tax prescribed herein is not fully paid

at the time specified herein, such tax shall be increased by twenty-five per

centum, the increment to be part of the tax and the entire amount shall be

payable upon demand or the period specified therein: Provided, That any

failure to pay upon demand or within the period specified therein, such tax plus

surcharge shall be subject to interest at fourteen per centum per annum computed

from the date the demand has been duly served or received or such specified date

until the actual payment is made.

Section 4

SEC. 4. Any person violating the provisions of this Decree

or any regulation promulgated pursuant thereto shall, upon conviction, be fined

in an amount not less than ten thousand pesos nor more than fifty thousand pesos

and imprisoned for a period not less than six months nor more than five years;

Provided, however, that if the offender is a corporation, association

or partnership, the penalty shall be imposed upon the president, directors,

manager, managing partners, as the case may be, and the persons charged with the

administration thereof.

Section 5

SEC. 5. The Minister of Finance in consultation with the

Governor of the Central Bank of the Philippines shall prescribe and promulgate

the necessary rules and regulations to carry out the provisions of this

Decree.

Section 6

SEC. 6. Any provision of law or regulations inconsistent

herewith is hereby repealed, revoked or modified accordingly.

Section 7

SEC. 7. If any provision of this Decree or the application

of such provision to any person or circumstance is held invalid, the remainder

of this Decree and the applications of such provision to other persons or

circumstances shall not be affected thereby.

Section 8

SEC. 8. This Decree shall take effect immediately.

Done in the City of Manila, this 6th day of June, in the year of Our Lord,

nineteen hundred and eighty-four.