Presidential Decree No. 776 (PD 776) — Modifying All Laws, Acts, Decrees, Orders and Ordinances Granting Subsidies, Exemptions from Taxes, Duties, Fees, Imposts and Other Charges Under Certain Exceptions and Creating a Fiscal Incentives Board.
WHEREAS, a study of the present tax structure shows that a
number of fiscal incentives have been granted;
WHEREAS, there is a
need to review and update these incentives in the light of
international and domestic developments;
WHEREAS, it is deemed imperative to harmonize incentives
with the ability to manufacture goods domestically and to conserve
government revenues.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution,
do hereby order and decree:
SECTION 1. Any and all tax exemption benefits and privileges
validly acquired, exercised and granted to individuals, associations,
corporations and entities, and all laws, decrees, orders or ordinances
giving rise thereto, may now be modified by the Fiscal Incentives Review
Board except those embraced and expressly provided hereunder, to wit:
Constitutional provisions
International comity or treaty
National Internal Revenue Code as of its amendment by PD 69
Tariff and Customs Code as of its amendment by PD 34
Local Tax Code as to its amendment by PD 426
Statutory prescriptions bearing on—
Export Processing Zone Authority
BOI registered industries
Multi-national corporations
Service contracts on oil explorations
SEC. 2. A Fiscal Incentives Review Board is hereby created
for the purpose of determining what subsidies and tax exemptions should
be modified, withdrawn, revoked or suspended, which shall be composed of
the following officials:
Chairman—Secretary of Finance
Members—Secretary of Industry
—Director General of the National Economic and Development Authority
—Commissioner of Internal Revenue
—Commissioner of Customs
The Board may recommend to the President of the Philippines and for
reasons of compatibility with the declared economic policy, the
withdrawal, modification revocation or suspension of the enforceability
of any of the above-cited statutory subsidies or tax exemption grants,
except those granted by the Constitution. To attain its objectives, the
Board may require the assistance of any appropriate government agency or
entity. The Board shall meet once a month, or oftener at the call of
the Secretary of Finance.
SEC. 3. All laws, acts, decrees, orders, and ordinances
inconsistent with any of the provisions of this Decree are repealed or
modified accordingly.
SEC. 4. This Decree shall take effect immediately.
Done in the City of Manila, this 24th day of August, in the
year of Our Lord, nineteen hundred and seventy-five.
(Sgd.)
FERDINAND E. MARCOS
President
Republic of the Philippines
By the President:
(Sgd.)
ROBERTO V. REYES
Acting Executive Secretary
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
