EXECUTIVE ORDER NO. 1064
EXECUTIVE ORDER NO. 1064 -
IMPLEMENTING THE COCONUT PRODUCTIVITY PROGRAM
WHEREAS, an accelerated coconut
productivity program involving the use of high-yielding and precocious
coconut hybrid varieties is imperative if we are to ensure the
survival, growth and viability of the coconut industry.
WHEREAS, in view of its limited resources, the Government is
constrained to mobilize the private sector and to call on private
investors to contribute in this national endeavor to increase coconut
productivity;
WHEREAS, to encourage the private sector to participate actively in
this undertaking, necessary tax and fiscal incentives in addition to
those provided by existing laws, including among others P.D. 1789,
Title VII, Article 57, should be granted to persons or entities that
engage in coconut planting/replanting program on a commercial scale:
NOW, THEREFORE, by virtue of the powers vested in me by the
Constitution and the law, I, FERDINAND E. MARCOS, President of the
Philippines, do hereby order the following:
Section 1. The Philippine Coconut Authority (PCA) is
hereby directed to immediately formulate and implement an accelerated
coconut hybrid planting and replanting program (the Program) aimed at
increasing farm productivity. The annual program (January-December)
shall be prepared by the PCA Board in consultation with the private
sector and reviewed by the Cabinet and shall be effective upon approval
of the President and 30 days after publication of the same in
newspapers of general circulation. The Program shall include the
rehabilitation of existing coconut trees as well as intercropping of
areas planted to coconut with suitable crops and the replanting shall,
together with the project(s) as hereinafter defined involve
approximately 30,000 hectares per annum. PCA shall implement the
Program with the active assistance and participation of the recognized
organization of coconut farmers pursuant to the provisions of RA 6260
and shall service the requirements of small coconut farmers owning not
more than twenty-four (24) hectares who volunteer to participate in the
Program. Initially, the devastated areas in Visayas and Mindanao shall
be given priority.
Sec. 2. In order to finance the Program, all
collection from the basic export duty imposed by Sec. 514 of PD 1464
and the addition export duty under Executive Order No. 920-A as
amended, on coconut products shall accrue to the general fund to meet
the requirements of the Program. To assure the continuity of the
Program in the long term, Government shall allocate sufficient
resources from the general revenues to finance the requirements of the
Program. The Minister of Budget is hereby directed to release to PCA
its funding requirements in accordance with the annual budgetary
process duly prepared by the PCA Board and approved by the President.
The Program shall be subject to annual review by the President.
Sec. 3. In order to step up coconut planting and
replanting activities at a commercial scale, and particularly to
encourage the private sector to actively participate in this endeavor,
financial assistance as defined and enumerated in Sec. 4 hereof is
hereby granted to any person or entity, who shall engage and implement,
singly or in association with others, a project for the planting or
replanting with high-yielding and precocious coconut planting materials
(the “Project”).
For purposes of this Section , the Project shall comply wit the
following guidelines:
1.
The Project shall be prepared in accordance with the farm developmental
plan as approved by the President. Each project shall be defined and
prescribed in a farm developmental plan, which shall include, among
others, the total reasonable projects cost and the method and source of
financing of the project.
2. The Project
proponents shall commit for the full development of the area, including
the maintenance cost for four (4) years from time of field planting of
suitable intercrop as well as the establishment of farm
infrastructures.
3. The Project
shall be fully developed and implemented within seven (7) years from
date of approval of the farm developmental plan.
Sec. 4. Any person or entity participating in the
financing of the Project or of any planting and/or replanting program
under PD 1972 shall be entitled to the following benefits and
incentives:
1.
To the extent of the amounts actually spent and invested for the
Project or the Program as verified by the PCA to be in accordance with
the approved farm development plan, any exported of coconut products
shall be given tax credits or duty rebates for the export duties
actually paid by the exporter.
Any person or entity other plan
an exported of coconut products which spends and invest to an approved
Project or the Program shall be granted a tax credit with a face value
equal to its actual investment. An exporter of coconut products shall
likewise be granted a tax credit with a face value equal to its actual
investment less the amount actually covered by tax credits or duly
rebates for export duties actually paid.
The tax credit herein authorized
shall be evidenced by a tax credit certificate which shall be issued by
the Minister of Finance upon certification by PCA of the progress of
development in accordance with the approved farm development plan. PCA
shall verify on quarterly basis the progress or work on the approved
Project and shall certify the extent of completion thereof and the
amount of contribution paid by a participant. The certification by PCA
shall be final and conclusive for the Ministry of Finance to issue tax
credit certificates within ten (10) days from receipt hereof.
No tax credit certificate shall
be issued until and unless the PCA certification states that the
particular work for a given quarter has been completed and no tax
credit shall be granted for the cost of maintenance of a portion or
portions of the Project are which have been brought to the productive
stage.
The tax credit certificate shall
be negotiable and may be used or applied against any or all taxes
including but not limited to income taxes, specific taxes ad valorem
taxes, sales taxes, percentage taxes, duties, charges, wharfage fees
due the National Government. The tax credit issued pursuant herewith
shall be valid only for a period of ten (10) years from date of the tax
credit certificate.
2. At his
option, a refund in lieu of tax credit shall be given to any person or
entity who invests in the Project. A corresponding refund certificate
shall be issued by the Ministry of Finance upon certification by PCA of
the amounts actually spent and invested in the Project or the Program
upon certification by PCA of the progress of development in accordance
with the approved farm development plan. PCA shall verify on quarterly
basis the progress of work on the Project and shall certify the extent
of compliance with the farm development plans as approved under Sec. 3 hereof.
Within fifteen (15) days from
every end of quarter, the PCA shall certify to the Ministry of Finance
the amount of refund to which the investors are entitled.
The certification by PCA and COA
shall be final and conclusive for the Ministry of Finance to issue
refunds within ten (10) days from receipt thereof subject to the usual
auditing regulation.
In no case shall the refund
exceed the amount spend or invested from the development in progress
and no refund shall be issued after the lapse of four (4) years from
field planting or seven (7) years from the date of issuance of the
certificate of eligibility whichever comes first.
3. Within the
development period of the Project as determined by the farm development
plan, and upon certification of the PCA that the capital equipment to
be imported shall be utilized for the development of a Project, all
importations of a Project for machinery and equipment including the
initial supply of spare parts thereof shall be fully exempted from
payment of tariff duties and taxes.
4. Any amount
contributed to the Program and/or the Project shall be exempted from
the payment of donor’s and donee’s taxes. Receipt by the participants
of evidence of participation in an approved Project such as but not
limited to associational rights, partnership interests, cooperative
shares of stock, shares of stock in a corporation shall not form part
of the gross income of the recipient participant and are likewise
exempted from payment of all taxes and duties.
5. For a
period of ten (10) years from date of approval of the Project, no real
property taxes shall be imposed and collected on the lands included in
the Project as well as on all improvements introduced therein and all
machinery and equipment therein located.
Sec. 5. Except for causes beyond the control of
the proponents of the Project, the failure to complete the Project
within the period specified in Sec. 3(3) shall result in the
forfeiture of the incentives and benefits herein granted.
Sec. 6. Any violation of the provisions of this
Executive Order, and/or the rules and regulations issued pursuant
hereto, shall be punished and penalized in accordance with Section 1,
Article IV of Presidential Decree No. 1468, as amended.
Sec. 7. All laws, executive and administrative
orders, and/or rules and regulations respectively issued by the
governmental agencies concerned, inconsistent herewith, except those
promulgated to implement the provisions and tax exemptions provided in
Presidential Decree No. 1960 and Presidential Decree No. 1468, as
amended, are hereby repealed, amended or modified accordingly.
Sec. 8. This Order shall take effect immediately.
Done in the City of Manila,
this 13th day of November, in the year of Our Lord, nineteen hundred
and eighty-five.
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Since 19.07.98.