WHEREAS,
the continued development of the Surigao Mineral Reservation has become
more important to the national economy;chanroblesvirtualawlibrary
WHEREAS, the tax exemption granted to the operator under paragraph (1)
Section 6-A of Republic Act No. 1828, as amended, has expired on
December 31, 1979; and
WHEREAS, in view of increased costs of operation, particularly of fuel,
the development of the Surigao Mineral Reservation cannot be pursued
unless the exemptions originally granted to the operator are extended.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
decree and order the amendment of Paragraph (1) of Section 6-A of
Republic Act No. 1828, as amended, as follows: chanroblesvirtualawlibrary
Section 1. Paragraph (1) of section 6-A of Republic
Act No. 1828, as amended, is hereby further amended to read as follows:cralaw:red
(1) The operator shall pay and guarantee payment to
the government out of the gross annual receipts from all minerals,
mineral and metal products, and by-products resulting from the
operation, processing and disposition of mineral deposits, other than
those nickel, cobalt, and iron, a royalty of not less than five per
centum (5%) of the said gross annual receipts, F.O.B. points of export
beginning with the end of the first year after the effective date of
the contract: Provided, That the operator shall, from January 1, 1980
to December 31, 1981, be exempt from all taxes, duties, fees and
charges, both national and local, directly payable by it for any work
or activity, equipment, machinery, materials, instruments, supplies,
accessories, structures, buildings, lands improvement, and/or other
properties directly connected with or needed and to be used or being
used exclusively in the operation, other than those provided in this
act and except income tax and those fees and charges that are imposed
for work or services actually rendered to the operator: Provided,
further, That the operator shall put in operation the area of areas
covered by the contract within two (2) years from the effective date of
the contract. Thereafter penalties may be applied against the operator
for failure to effect such production and/or reach certain levels of
production within specific time periods, as may be agreed upon:
Provided, finally, That exemptions from taxes shall not extend to taxes
from contractor's personnel in their personnel capacities.
Section 2. All provisions of Republic Act No. 1828,
as amended; the Memorandum of Agreement and the Operating contract
dated July 3, 1968 executed between the Republic of the Philippines and
Marinduque, Mining & Industrial Corporation and all other laws,
decrees, executive orders, or parts thereof, inconsistent with this
Decree are hereby repealed, modified and/or amended accordingly.
Section 3. This Decree shall take effect immediately.
Done in the city of Manila,
this 10th day of January, in the year of Our Lord, nineteen hundred and
eighty.
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