Section 15
SEC. 15. Section Seven, excluding paragraphs (c) and (d), Republic Act Numbered Sixty-One hundred Thirty-Five is hereby amended to read as follows: "SEC. 7. Incentives to Registered Export Producers. — Registered export producers, unless they already enjoy the same privileges under other laws, shall be entitled to the incentives set forth in paragraphs (g), (h), (i), (j) and (k) of Section seven of Republic Act Numbered Fifty-one hundred eighty-six, known as the Investment Incentives Act; and registered export producers that are pioneer enterprises shall be entitled also to the incentives set Forth in paragraphs (a), (b) and (c) of Section eight of the said Act. In addition to the said incentives, and in lieu of other incentives provided in Sections seven and nine of that Act, registered export producers shall be entitled to benefits and incentives as enumerated hereunder: Tax Credit. — Every registered export producer shall enjoy a tax credit equivalent to the sales, compensating and specific taxes and duties on the supplies, raw materials and semi-manufactured products used in the manufacture, processing or production of its export products and forming part thereof, whether exported directly by the registered export producer or sold to another export producer, which uses such sold product as a direct input in export products manufactured or processed by it and subsequently exported or to a registered export trader: Provided, That the tax credit shall accrue to the registered export producer only after the other export producer or registered export trader has in fact exported the products of the export producer or those in the manufacture or processing of which such inputs were used. The tax credit shall be issued by the Secretary of Finance, upon presentation of the export documents, and shall be in lieu of refunds. It may be used to pay taxes, duties, charges, and fees due to the National Government in connection with its operations. A tax credit shall be non-transferrable, except when such transfer is by hereditary succession or occurs by operation of law; it may be used by the person or entity to whom it is issued only for as long as it enjoys the benefits and incentives provided for in this Act; and may not be used so as to result in a refund. Reduced income tax. — Every registered export producer, except those registered under Section six, paragraph (b), subsection (iii) of this Act, shall be entitled for the first five (5) years from the registration, to deduct from its taxable income an amount equivalent to the sum of the direct labor cost and local raw materials utilized in the manufacture of its export products: Provided, however, That such deduction shall in no case exceed twenty-five per centum (25%) of its total export revenue. Exemption from Export Tax. — The provisions of law to the contrary notwithstanding, exports by a registered export producer, of its registered export product shall be exempted from the export tax, impost or fee, including the stabilization tax under Republic Act Numbered Sixty-one hundred twenty-five."