Overview
Full Text
Details
Case
Agency Issuance Number
Published Date
Amending P.D. No. 551
Presidential Decree No. 852
December 19, 1975
Case Overview and Summary
Summary of Presidential Decree No. 852Franchise Tax on Electric and Gas Utilities
- The franchise tax payable by grantees of franchises to generate, distribute and sell electric current and city gas shall be 2% of their gross receipts. (Section 1)
- This franchise tax shall be paid to the Commissioner of Internal Revenue quarterly or monthly, as specified in the franchise. (Section 1)
- The franchise tax shall be in lieu of all other taxes and assessments on earnings, receipts, income and privilege of generation, distribution and sale of electric current and city gas. (Section 1)
Tariff Reduction on Petroleum Oils for Power Generation and City Gas
- Petroleum oils used as fuel oils for electric power generation and city gas manufacture shall be subject to a 10% ad valorem tariff rate. (Section 2)
- Other petroleum oils shall be subject to a 20% ad valorem tariff rate. (Section 2)
Tax Credit on Imported Crude Oil for Power Generation and City Gas
- A refund or tax credit of up to 50% of the duty shall be allowed on imported crude oils eventually used for electric power generation and city gas manufacture by non-electric utilities. (Section 3)
- The tax credit shall be paid or credited under rules prescribed by the Commissioner of Customs with the approval of the Secretary of Finance. (Section 3)
Passing on Savings to Consumers
- All savings realized by electric franchise holders from the tax and tariff reductions shall be passed on to the ultimate consumer. (Section 4)
- The Secretary of Finance shall promulgate rules, regulations and a reporting system to carry out this provision. (Section 4)
Penalties
- Violation of passing on savings to consumers or the rules prescribed by the Secretary of Finance shall be penalized by a fine of not more than P50,000 and imprisonment of not more than 6 months. (Section 4)
- The Secretary of Finance may order compulsory price or rate reduction, either prospective or retroactive. (Section 4)
- If the offense is committed by a juridical person, the manager or person in charge shall be responsible. (Section 4)
Effectivity
- This Decree shall take effect immediately. (Section 5)
Amends
n/a
Amended by
n/a
Tags
Executive Issuances
Presidential Decrees
franchise tax
electric utilities
city gas
tariff
petroleum oils
tax credit
electric power generation
price reduction
penalties
Law
Amending P.D. No. 551
Presidential Decree No. 852
•December 19, 1975
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 852 December 19, 1975
AMENDING PRESIDENTIAL DECREE NO. 551
WHEREAS, there is a need to equalize the cost of fuel among those which are generating electric power for residential, commercial and individual uses and those manufacturing "city gas";
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the power vested in me by the Constitution, do hereby order and decree:
Section 1. Any provision of law or local ordinance to the contrary notwithstanding, the franchise tax payable by all grantees of franchises to generate, distribute and sell electric current for light, heat and power and for the manufacture, distribution and sale of city gas shall be two percent (2%) of their gross receipts received from the sale of electric current and from transactions incident to the generation, distribution and sale of electric current and of manufactured city gas.
Such franchise tax shall be payable to the Commissioner of Internal Revenue or his duly authorized representative on or before the twentieth day of...
Login to see full content
Amends
n/a
Amended by
n/a