Preamble
WHEREAS, Sec. 290-B of the National Internal Revenue Code, as amended, provides for a flexibility clause empowering the President, under certain conditions and subject to specific limitations therein, to revise tax rated, change the classification of taxable articles, and revise the taxable base and manner of computing internal revenue tax; WHEREAS, in order to enhance tax collection, it is necessary to simplify and modify the existing tax structure through the systematization of tax deadlines as well as the method and manner of tax computation; WHEREAS, it appears that the present flexibility clause, is inadequate to satisfy the foregoing objectives; moreover, the same is not an effective instrument to enable the country to fulfill its ASEAN an international commitments; 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, as follows: