PROCLAIMING A TAX AMNESTY FOR UNTAXED MOTOR VEHICLES SUBJECT TO CERTAIN CONDITIONS

WHEREAS, pursuant to General Order No. 2-A, dated
September 26, 1972, a large number of motor vehicles transferred from
tax-exempt persons/entities to non-tax-exempt persons/entities or
imported motor vehicles where the correct duties and taxes have not been
paid, have either been impounded by or are being voluntarily
surrendered to the authorities and are now under government custody
pending the assessment and collection of the correct duties and taxes
due thereon;

WHEREAS, only a few, if any, of the owners or
possessors thereof will be able to pay the correct duties and taxes on
these motor vehicles for the reason that under the present rates and
system of computation the correct duties and taxes will exceed the
present market value of the vehicles such that the strict enforcement of
the existing pertinent laws will have a confiscatory effect against
personal property which may have been acquired in good faith;

WHEREAS, it is the policy of the Government to
encourage the payment of the duties and taxes due thereon and put a stop
to graft and corruption in the different revenue collection and
enforcement agencies of the Government brought about by the existence of
this so-called “hot car ” racket;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of
the Republic of the Philippines, by virtue of the powers in me vested
by the Constitution as Commander-in-Chief of all the Armed Forces of the
Philippines, and pursuant to Proclamation No. 1081, dated September 21,
1972 and General Order No. 1, dated September 22, 1972, as amended,
whereby I have assumed direction of the operation of the entire
Government, do hereby decree and order that:

1. A fifty percent (50%) and a seventy percent (70%) across the board
   deduction be allowed on the duties and taxes collectible by the
   Government on vehicles transferred from tax-exempt persons/entities to
   non-tax exempt persons/entities, or such vehicles where the correct
   taxes and duties have, not been collected, depending upon the year
   models of such vehicles and under the following mechanics:

   The Bureau of Customs shall:

   1. Compute the correct duties and taxes on these vehicles based on
      the present rates of duty and tax and the current conversion rate of
      foreign exchange;
   2. Reduce the total amounts of taxes arrived at by 50% for
      vehicles with year models 1970 to 1972 and 70% for year models 1969 and
      below;
   3. Deduct whatever duties and taxes might have been originally
      paid on these vehicles, upon presentation of evidence of payment to be
      verified by the Bureau of Customs;
   4. Collect the balances still due the Government as duties and
      taxes on these vehicles;
   5. The current year (1972) shall be considered as the date of the
      first sale or transfer for purposes of assessment of the customs duty
      and compensating tax;
   6. If the amount of duty and tax still found due would exceed
      five thousand pesos (P5,000) the owner may pay the same in two (2) equal
      installments, the second installment to be paid not later than March
      31, 1973, otherwise the motor vehicle shall be subject to outright
      forfeiture in favor of the Government with prejudice to refund of duty
      and tax previously paid.

2. This tax amnesty shall apply only to vehicles which have been
   acquired or transferred prior to October 12, 1972.
3. The tax amnesty shall be effective only up to December 31,
   1972.
4. After the duty and tax shall have been paid pursuant to this
   Decree the taxpayer shall be cleared of all criminal responsibility by
   reason of non-payment of the correct duty and tax on such motor
   vehicles.

The Department of Finance shall promulgate the rules and regulations
for the effective implementation of this Decree.

Done in the City of Manila,, this 16th day of November, in the year
of Our Lord, nineteen hundred and seventy-two.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) RONALD B. ZAMORA
		Assistant Executive Secretary