Non-profit Character of the Authority; Exemption from Taxes.
Section 21
SEC. 21. Non-profit Character of the Authority; Exemption from Taxes. — The Authority shall be non-profit and shall devote and use all its returns from its capital investment, as well as excess revenues from its operations, for the development, improvement and maintenance and other related expenditures of the Authority to pay its indebtedness and obligations and in furtherance and effective implementation of the policy enunciated in Section 1 of this Decree. In consonance therewith, the Authority is hereby declared exempt: From the payment of all taxes, duties, fees, imposts, charges, costs and service lees in any court or administrative proceedings in which it may be a party, to the Republic of the Philippines, its provinces, cities, municipalities and other government agencies and instrumentalities; From all income taxes, franchise taxes, realty taxes and all other^ kinds of taxes and licenses to be-paid to the National Government, its provinces, cities, municipalities and other government agencies and instrumentalities; and From all tariff and customs duties, and advance sales tax, on import of capital goods required for its operations. The foregoing exemptions may however be entirely or partially lifted by the President of the Philippines upon recommendation of he Secretary of Finance, not earlier than five years from the approval of this Decree, if the President shall find the Authority to be self-sustaining and financially capable by then to pay such taxes, customs duties, fees and other charges, after providing for debt service requirements of the Authority and its projected capital and operating expenditures.