Preamble
WHEREAS, the domestic scheduled airlines had been granted under their respective congressional franchises exemption from customs duty and compensating tax in consideration of the franchise tax on gross receipts therein imposed and of the essential air transportation service they provide the public; WHEREAS, there is a pressing need to rehabilitate our faltering civil aviation industry, to expand and improve the service being provided by the domestic scheduled airlines, to assure a favorable competitive position of our national flag carrier in the international field and to make the operations of our scheduled airlines financially sound and economically viable to effect the desired social and economic development of our country; WHEREAS, the Philippines is blessed with bountiful mineral resources, the development and exploitation of which is essential to our economic development; and WHEREAS, the mining industry requires large amounts of high risk capital and needs tax incentives during the initial years of commercial operations; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, as amended, do hereby amend Section 105 of the Tariff and Customs Code, as amended, to wit: