GRANT OF ADDITIONAL INCENTIVES TO ACCELERATE THE COCONUT PRODUCTIVITY PROGRAM

WHEREAS, the current economic crisis amounts to a grave
emergency which affects the stability of the nation and requires immediate
action;

WHEREAS, as part of the national economic recovery efforts,
it is necessary to accelerate the coconut productivity program by liberalizing
the availment of incentives or assistance to those who would like to participate
in and implement the coconut productivity program;

WHEREAS, it is also necessary to provide the necessary
appropriation to enable Government to program 30,000 hectares a year for coconut
planting/replanting;

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

SECTION 1. Section 3 of P.D. 1972 is hereby amended to read
as follows:

“In accordance with the general government policy of self-reliance and in
order to encourage the private sector to devise and implement their own planting
or replanting program, the Government through the Philippine Coconut Authority
(PCA) hereby, adopts a supplementary program of financial assistance by
appropriating funds from out of the revenue of the national government and/or
local government and, as may be determined by the President from out of
borrowings, so that 30,000 hectares could be programmed per year for planting or
replanting. Government assistance can be given in the form of incentives, such
as:

1. Tax credits or duty rebates if the persons or entities which have paid taxes
   or duties have advanced invested funds in accordance with laws and implementing
   rules and regulations.
2. Refunds of reasonable amounts actually spent invested by qualified persons
   or entities in projects that qualify under the coconut planting/replanting
   program of the Government.
3. Tax and duty exemptions for capital equipment utilized in the development of
   such projects.
4. Exemption from payment of: (i) donor’s and donee’s taxes on any amount
   contributed to the Program and/or the Project; and (ii) real property taxes on
   lands included in the Project as well as on all improvements introduced therein
   and all machinery and equipment therein located for a period of ten (10) years
   from date of approval of the Project.

The Project or any participating person or entity may acquire lands or
interest therein, notwithstanding any prohibition or restrictions imposed by
Commonwealth Act No. 141, as amended, otherwise known as the Public Land Act;
Provided, the proposed owners qualify under nationality requirements of the
Constitution of the Philippines.”

SEC. 2. The President may grant new or additional incentives
or modify existing ones in order to ensure the continued viability of the
coconut productivity program.

SEC. 3. This Decree shall take effect immediately.

DONE in the City of Manila, this 7th day of November in the year of Our Lord,
nineteen hundred and eighty-five.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JUAN C. TUVERA
		Presidential Executive Assistant