WHEREAS, it is a policy of the Government to provide
adequate assistance to the agricultural sector in line with the national
objective of giving impetus to food production;
WHEREAS, pursuant to this policy, fertilizer and fertilizer
inputs that can be procured locally should be granted tax exemption
similar to that allowed on imports;
WHEREAS, an amendment to Section 3 Paragraph 5 of
Presidential Decree No. 135 placing on equal footing importations and
local purchases of fertilizer and fertilizer inputs in so far as their
tax treatment is concerned will enable domestic producers and suppliers
to compete effectively with foreign suppliers resulting in savings in
foreign exchange and other inherent benefits to the country.
WHEREAS, an amendment to the same provision of the said
decree to extend the power of the Authority from two years as originally
contained in Presidential Decree No. 135 to five years is required to
provide the Authority with added flexibility in procuring finished
fertilizers and the necessary inputs to production in view of
foreseeable continued tight supply and high world market prices of
fertilizers.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution,
do hereby amend Section 3 Paragraph 5 of Presidential Decree No. 135, as
follows:
"SECTION 3. The Fertilizer Industry Authority shall have
the following powers:
To import fertilizer and fertilizer inputs exempt from,
customs duties, compensation and sales taxes and all other taxes, and to
purchase locally naptha free from specific taxes and the corresponding
duty on the imported crude for a period of five years from February 22,
1973 unless earlier terminated or later extended by the President, and
to sell or convey such fertilizer or fertilizer input to any individual
association, or corporation likewise exempt from the payment of customs
duties and all other taxes."
This Decree shall take effect on July 19, 1974.
Done in the
City of Manila, this 19th day of July, in the year of Our Lord,
nineteen hundred and seventy-four.
(Sgd.)
FERDINAND E. MARCOS
President of the Philippines
By the President:
(Sgd.)
ALEJANDRO MELCHOR
Executive Secretary