Preamble
WHEREAS, it is necessary to reduce the tax imposed on second sale and to make the tax burden more equitably distributed at every stage of subsequent sale; WHEREAS, a tax on subsequent sale will simplify tax administration and insure voluntary tax compliance; and WHEREAS, there is a need to alleviate the tax burden on the agricultural sector in order to hasten the economic development of the country. NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree: manufacture and forming part of the finished products subject to tax under Sections 163, 164 and 165IA) (1) (2) and (3) of the Tax Code shall be allowed as a tax credit against any internal revenue tax liability directly due from the manufacturer exporting said products: Provided, That the amount of the tax on locally purchased raw material, part, or accessory, or other article is indicated as a separate item in the sales invoice of the supplier from whom it was last purchased: and Provided, further, That the direct exporter shall file an application for tax credit within one year from the close of the taxable year in which the export was effected. In case finished products are exported by an export trader other than the manufacturer, the entire amount of sales and excise taxes separately indicated in the sales invoice of the immediate seller of the finished products exported shall be allowed to be credited against other tax liabilities of the export trader subject to the filing of an application as herein prescribed; "(f) Sales by 'registered export producers' to (1) other 'export producers', (2) 'registered export traders' or (3) foreign tourists or travelers, which are considered as 'export sales'; "(g) Sales by manufacturers, producers or traders direct to foreign tourists and paid for in convertible foreign currency if the articles so sold are actually brought out of the Philippines by the buyers upon their departure; and "(h) Those that may be granted by the President upon recommendation of the National Economic Development Authority in the interest of economic development."