CLASSIFYING ANTI-POLLUTION MACHINERIES AND EQUIPMENT OF INDUSTRIAL PLANTS IN THE PH1VIDEC INDUSTRIAL ESTATES AS SPECIAL CLASS FOR REAL PROPERTY TAXATION PURPOSES.

WHEREAS, in compliance with anti-pollution laws, industrial
plants operating in the PHIVIDEC Industrial Estates have installed
anti-pollution systems to protect the community where these plants are located
from the degradation of the environmental condition;

WHEREAS, the installation and maintenance of the
anti-pollution systems entail enormous expenses, which add up to the cost of the
industrial plants, yet these devices and equipment do not contribute to the
production outputs of the plants;

WHEREAS, these anti-pollution systems are subject to payment
of real property taxes imposed by the PHIVIDEC Industrial Authority pursuant to
PD 538;

WHEREAS, considering that these anti-pollution systems are
installed in industrial plants, they are assessed for taxation purposes at the
maximum assessment level of 80%, thereby subjecting industrial operators in the
PHIVIDEC Industrial Estates to the payment of higher realty taxes;

WHEREAS, an effective way of encouraging investors to put up
additional industrial plants in the area, is to reduce real property taxes due
on the anti-pollution systems;

WHEREAS, under Presidential Decree No. 464, as amended by
Presidential Decree No. 1812, the president of the Philippines is empowered to
adjust the assessment levels or assessed values of real properties whenever
found necessary and in the interest of the general welfare;

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 the following;

SECTION 1. Anti-pollution machineries, devices and
equipment, installed in industrial plants located in the PHIVIDEC Industrial
Estates, certified by the National Pollution Control Commission as such, shall
be classified as Special Class of Real Property and therefore the assessment
level to be applied to the market value thereof for real property taxation
purposes shall be fifteen (15%) per cent only;

SEC. 2. The provision of Section 1 hereof shall apply
retro-actively to all anti-pollution machineries, devices and equipment in the
PHIVIDEC Industrial Estate.

SEC. 3. All acts, orders, rules and resolutions inconsistent
with this Decree are hereby modified accordingly.

SEC. 4. This Decree shall take effect immediately.

Done in the city of Manila this 20th day of July, in the year of Our Lord,
Nineteen Hundred and Eighty-three.

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