IMPOSING A SPECIAL EXCISE TAX ON FOREIGN EXCHANGE SOLD BY THE CENTRAL BANK OF THE PHILIPPINES AND ITS AGENTS; PRESCRIBING PENALTIES FOR VIOLATIONS HEREOF AND FOR OTHER PURPOSES.

WHEREAS, national economic interest requires a stabilization
strategy as a result of recent adjustments in the exchange rate of the peso,

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, pursuant to the powers vested in me by the Constitution of the
Philippines, do hereby direct and order that:

SECTION 1. There shall be levied, assessed, collected and
paid a special excise tax of ten per centum (10%) on the value in pesos of
foreign exchange sold by the Central Bank of the Philippines or any of its
agents, except for payment of merchandise imports to the Philippines.

SEC. 2. The tax imposed under Section one hereof shall be
paid to the Central Bank of the Philippines or its agents by the purchaser of
the foreign exchange and the Central Bank of the Philippines or its agents shall
not sell any foreign exchange subject to the tax imposed herein, without the
payment of the said tax. The monies collected shall accrue to the General Fund
in the National Treasury and shall be remitted within the period and subject to
the conditions applicable to remittances of tax collections.

SEC. 3. Any person violating the provisions of this Decree
or any regulation promulgated pursuant thereto shall, upon conviction, be fined
in an amount not less than ten thousand pesos nor more than fifty thousand pesos
and imprisoned for a period not less than six months nor more than five years;
Provided, however, that if the offender is a corporation, association or
partnership, the penalty shall be imposed upon the president, directors,
manager, managing partners, as the case may be, and the persons charged with the
administration thereof.

SEC. 4. The Minister of Finance in consultation with the
Governor of the Central Bank of the Philippines shall prescribe and promulgate
the necessary rules and regulations to carry out the provisions of this Act.

SECTION. 5. Any provision of law or regulations inconsistent
herewith is hereby repealed, revoked or modified accordingly.

SEC. 6. If any provision of this Act or the application of
such provision to any person or circumstance is held invalid, the remainder of
this Act and the application of such provision to other persons or circumstances
shall not be affected thereby.

SEC. 7. This Act shall take effect immediately and shall
continue in effect until December 31,1985.

Done in the City of Manila, this 6th day of June, in the year of Our Lord,
nineteen hundred and eighty-four.