EXTENDING THE PERIOD OF TAX EXEMPTION OF PHILIPPINE AEROSPACE DEVELOPMENT CORPORATION

WHEREAS, under its Charter (Presidential Decree 286, as
amended by Presidential! Decree 696), Philippine Aerospace Development
Corporation (PADC), a government corporation, is exempt from all national and
local taxes, duties and fees for seven (7) years from date of promulgation of
charter, and which period expired on June 30, 1981.
Whereas, due to heavy
losses in operations, in view of the burdensome interests on foreign borrowings,
the financial standing of PADC is not in a position to meet the taxes, fees and
duties due.

WHEREAS, aviation industry which PADC is legally mandated to
develop, needs Government assistance and support.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution do hereby
order and decree:

1. Section 10 of Presidential Decree 286, as amended by Presidential Decree
   696, is further amended to read as follows:
   “Section 10. Exemptions.—The
   Corporation and its subsidiaries shall be exempt from all national and local
   taxes, duties and fees, and shall not be subject to tariff, compensating tax and
   all other taxes, assessments and charges for their importation of machineries,
   equipments, devices, goods and spare parts and other items to be used for the
   purpose authorized under this Decree.”
2. The effectivity of this Decree shall retroact to July 1, 1981.

Done in the City of Manila this 31st day of January, in the year of Our Lord,
nineteen hundred and eighty-four.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) MANUEL M. LAZARO
		Presidential Assistant for Legal Affairs