Development and Stabilization Fund.
Section 7
SEC. 7. Development and Stabilization Fund. — There is hereby established the .National Grains Industry Development and Stabilization Fund, herein referred to as the "Fund," for the purpose of financing the growth and development of the industry and the stabilization of the domestic market in grains, to be administered in trust by the Central Bank of the Philippines, and derived in the manner herein below cited from the following sources: a) An additional tax on rice and corn mills as provided in Section ten of this Act; b) Stabilization fees which shall be collected from the warehousemen by the Administration on all grains covered by negotiable warehouse receipts or quedans at the rate of ten centavos (P0.10) per cavan or fifty kilograms of grain per month but not to exceed fifty centavos (P0.50) per year; c) A surtax on corporations as provided in Section eight of this Act; d) Such borrowings as may be obtained from PL480, international institutions and other outside foreign agencies; e) Such funds, profits, cash, and stocks of the Rice and Corn Administration (RCA) as will be turned over to the Administration; f) Fees for licensing bonded warehouses at rates which shall be determined by the Council and collected by the Administration per cubic meter bonded capacity; g) Fees, charges and/or surcharges hereby imposed in the issuance of licenses for importation of rice and corn and other grains, to be collected by the Administration at rates which shall be determined by the Council: Provided, That the rate of any surcharge to equalize the wholesale price of imported grain with the prevailing selling price of the equivalent commercial grain the domestic market shall be as determined by the Council under subparagraph (xii) of Section six of this Act; and h) A tax on the sale, exchange or transfer of real property as provided in Section nine of this Act. The taxes, fees, charges, surcharges and other levies aforestated in this section, including surcharges and penalties, if any, shall be turned over to the Central Bank of the Philippines to form part of the Fund. For this purpose, the agencies charged with the collection thereof shall remit their monthly collections to the Central Bank of the Philippines for the account of the Fund within fifteen (15) days of every succeeding month: Provided, however, That said taxes, fees, charges, surcharges and levies as provided for in this section shall take effect upon instruction of the President to the Council. Failure or refusal by any person to turn over or remit the collections within the period mentioned in this section shall be treated as a serious offense punishable under Section Twenty-nine of this Act. In order to enhance the usefulness of the Fund, the Central Bank of the Philippines is hereby authorized to invest the resources thereof and the proceeds or increments arising out of such investments shall form part of the Fund. Thirty (30%) per cent of the amount received every month shall be turned over within five (5) days from receipt to the Agricultural Guarantee Fund created under Republic Act Numbered Six thousand three hundred ninety to be disposed of in accordance with Section eleven of this Act. The remaining seventy (70%) percent of the Fund shall be utilized by the Administration for funding the requirements of the development of the grains industry starting with the production of grains and the stabilization of supply and prices including the following: a) Procurement of palay, rice, com and other grains in such quantities and places as may be necessary to stabilize the supply and price thereof; b) Implementation of price support programs for palay, com and other grains. The disposition, allocation and utilization of this portion of the Fund for the purposes envisioned in this Act shall be the exclusive prerogative of the Council.