AN ACT INCORPORATING CERTAIN SECTIONS OF THE NATIONAL INTERNAL REVENUE CODE OF 1977

Case Overview and Summary

Summary of Republic Act No. 7161

Incorporation of Sections from National Internal Revenue Code into Revised Forestry Code
- Sections 230 to 297 of the National Internal Revenue Code of 1977 are incorporated into Presidential Decree No. 705 (Revised Forestry Code) as Sections 68 to 77. (Section 1)
- References to Bureau of Internal Revenue, Commissioner of Internal Revenue, and Ministry of Finance are changed to Forest Management Bureau and Secretary of Environment and Natural Resources, respectively. (Section 1)

Reorganization of Revised Forestry Code
- Incorporated sections are placed under a new subtitle (Subtitle II) of Chapter III (Utilization and Management) of the Revised Forestry Code. (Section 2)

Charges on Timber Cut in Forestland
- 25% of the actual FOB market price based on species and grading shall be collected as charges on each cubic meter of timber cut in forestland, whether belonging to the first, second, third, or fourth group. (Section 3, amending Section 70)
- For pulpwood and matchwood cut in forestland, forest charges on each cubic meter shall be 10% of the actual FOB market price. (Section 3, amending Section 70)

Charges on Firewood, Branches, and Other Recoverable Wood Wastes
- Cutting of all mangrove species is banned. (Section 4, amending Section 71)
- Forest charges of Ten pesos (P10.00) shall be collected on each cubic meter of firewood cut in forestland, branches, and other recoverable wood wastes of timber when used as raw materials for manufacturing finished products. (Section 4, amending Section 71)
- Only third or fourth group wood can be taken for firewood, unless jointly authorized by the Secretaries of Environment and Natural Resources, and Agriculture for agricultural purposes. (Section 4, amending Section 71)

Charges on Minor Forest Products
- Section 73 of the Revised Forestry Code (formerly Section 235 of the National Internal Revenue Code) is repealed. (Section 5)
- Forest products not covered by other sections, except rattan, gums, resins, beeswax, guta-percha, almaciga resin, and bamboo, are exempt from charges. (Section 5, amending Section 72)
- Rattan, gums, resins, beeswax, guta-percha, almaciga resin, and bamboo shall be charged at 10% of the actual FOB market price. (Section 5, amending Section 72)

Effectivity and Application of Forest Charges and Determination of Market Price
- The new rates of forest charges shall be effective upon approval of this Act and shall be published in the Official Gazette or two newspapers of national circulation and posted in Department of Environment and Natural Resources field offices. (Section 6, adding Section 73)
- The actual FOB market price of forest products shall be determined annually by the Secretary of Environment and Natural Resources with a committee composed of representatives from various government agencies and industry sectors. (Section 6, adding Section 73)
- Forest charges shall be in lieu of administrative charges on environment and other fees and charges, except for planted trees and forest products harvested from industrial tree plantations and private lands covered by existing titles or approved land applications, which are exempted. (Section 6, adding Section 73)

Repeals and Renumbering
- Section 77 of the Revised Forestry Code is repealed. (Section 7)
- Sections 68, 68-A, and 68-B of the Revised Forestry Code are renumbered as Sections 89-A and 89-B to 92. (Section 7)

Effectivity
- This Act shall take effect fifteen (15) days after its publication in a newspaper of general circulation. (Section 8)