Amending Section Eighteen Of Republic Act Numbered Five Thousand One Hundred Eighty Six Otherwise Known As The Investment Incentives Act

Case Overview and Summary

Summary of Presidential Decree No. 383

Amending Section 18 of Republic Act No. 5186 (Investment Incentives Act)

- Extends the deadline for the Board of Investments to submit the Investment Priorities Plan to the President through the National Economic and Development Authority (NEDA):
• The original deadline of "within 120 days after its organization and not later than the end of January of every year thereafter" is amended. (Section 18)
• The President is now authorized to extend the deadline upon recommendation of NEDA. (Section 18)

- The amendment is necessary due to recent developments, particularly the rise in the costs of oil and its by-products, which is expected to result in changes in the cost structure of industries. (Whereas clause)
• This requires the Board of Investments to undertake a detailed review and examination of the desirability of each investment area and project listed in the Investment and Export Priorities Plans. (Whereas clause)
• This task will take some time to accomplish, making it difficult for the Board of Investments to submit the Investment and Export Priorities Plans within the original deadline. (Whereas clause)

- The amendment aims to give the Board of Investments ample time to study the exigencies presently confronting the country's industries and to provide for similar contingencies in the future. (Whereas clause)