MODIFYING ALL LAWS, ACTS, DECREES, ORDERS AND ORDINANCES GRANTING SUBSIDIES, EXEMPTIONS FROM TAXES, DUTIES, FEES, IMPOSTS AND OTHER CHARGES UNDER CERTAIN EXCEPTIONS AND CREATING…

WHEREAS, there is a
need to review and update these incentives in the light of
international and domestic developments;

WHEREAS, it is deemed imperative to harmonize incentives
with the ability to manufacture goods domestically and to conserve
government revenues.

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

SECTION 1. Any and all tax exemption benefits and privileges
validly acquired, exercised and granted to individuals, associations,
corporations and entities, and all laws, decrees, orders or ordinances
giving rise thereto, may now be modified by the Fiscal Incentives Review
Board except those embraced and expressly provided hereunder, to wit:

1. Constitutional provisions
2. International comity or treaty
3. National Internal Revenue Code as of its amendment by PD 69
4. Tariff and Customs Code as of its amendment by PD 34
5. Local Tax Code as to its amendment by PD 426
6. Statutory prescriptions bearing on—

1. Export Processing Zone Authority
2. BOI registered industries
3. Multi-national corporations
4. Service contracts on oil explorations

SEC. 2. A Fiscal Incentives Review Board is hereby created
for the purpose of determining what subsidies and tax exemptions should
be modified, withdrawn, revoked or suspended, which shall be composed of
the following officials:

Chairman—Secretary of Finance

Members—Secretary of Industry

—Director General of the National Economic and Development Authority

—Commissioner of Internal Revenue
—Commissioner of Customs

The Board may recommend to the President of the Philippines and for
reasons of compatibility with the declared economic policy, the
withdrawal, modification revocation or suspension of the enforceability
of any of the above-cited statutory subsidies or tax exemption grants,
except those granted by the Constitution. To attain its objectives, the
Board may require the assistance of any appropriate government agency or
entity. The Board shall meet once a month, or oftener at the call of
the Secretary of Finance.

SEC. 3. All laws, acts, decrees, orders, and ordinances
inconsistent with any of the provisions of this Decree are repealed or
modified accordingly.

SEC. 4. This Decree shall take effect immediately.

Done in the City of Manila, this 24th day of August, in the
year of Our Lord, nineteen hundred and seventy-five.