Section 5
SEC. 5. Section 12 of Republic Act No. 7296 is hereby amended to read as follows: "SEC. 12. Tax Provisions.�The grantee, its successors or assigns, shall be liable to pay the same taxes on their real estate, buildings and personal property, exclusive of this franchise, as other persons or corporations are now or hereafter may be required by law to pay. In addition thereto, the grantee, its successors or assigns, shall pay the value-added tax under Republic Act No. 7716, as amended, or a franchise tax of five percent (5%) per annum or at such percentage as may be prescribed by law, on all gross receipts of the air spraying and air transport business transacted under this franchise, whichever is higher: Provided, That the grantee, its successors or assigns, shall continue to be liable for income taxes payable under Title II of the National Internal Revenue Code pursuant to Section 2 of Executive Order No 72, unless the latter enactment is amended, or repealed, in which case the amendment or repeal shall be applicable thereto. "The grantee shall file the return with, and pay the taxes due thereon to the Commissioner of Internal Revenue or his duly authorized representatives in accordance with the National Internal Revenue Code and the return shall be subject to audit by the Bureau of Internal Revenue."