Preamble
WHEREAS, it is a declared national policy to encourage the acquisition of vessels by Philippine nationals for coastwise and international traffic; WHEREAS, chartering of foreign owned ships is one of the means of acquisition with the least impact on foreign exchange and domestic capital; WHEREAS, it is necessary to adjust the withholding tax on the consideration for the lease and charter payable to foreign entities at a reasonable level from 35% to 45%; 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 the following as part of the law of the land.