Preamble
WHEREAS, the open skies policy in the operations of international airline companies in the Philippines has proliferated chartered flights to and from the country; WHEREAS, international airline companies with scheduled flights to the Philippines are taxed on their incoming and outgoing business arising from passage documents sold in the country; WHEREAS, fares of chartered flights are not subject to any income tax under existing internal revenue laws and regulations; WHEREAS, there is a need to equalize the income tax burden and promote healthy competition among the international airline companies; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree: