Further Amending Paragraph (1) Of Section 6 Of Republic Act No. 1828, As Amended By Republic Acts Nos. 2077 And 4167 And Presidential Decrees Nos. 1001 And 1714

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M a n i l a

PRESIDENTIAL DECREE No. 1824

FURTHER AMENDING PARAGRAPH (1) OF SECTION 6 OF REPUBLIC ACT NO. 1828, AS AMENDED BY REPUBLIC ACTS NOS. 2077 AND 4167 AND PRESIDENTIAL DECREES NOS. 1001 AND 1714

WHEREAS, the continued development of the Surigao Mineral Reservation is of utmost importance to the national economy;

WHEREAS, the tax exemption granted to the operator under Paragraph (1) of Section 6 of Republic Act No. 1828, as amended, will expire on 31 December 1981; and

WHEREAS, in view of the unabated increases in the cost of fuel oil and continued depressed world prices of nickel and cobalt, the development of the Surigao Mineral Reservation, cannot be pursued unless the tax incentives granted to the operator are further 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 further amendment of paragraph (1) of Section 6 of Republic Act No. 1828, as amended, as follows:...

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Summary of Presidential Decree No. 1824

Amending Paragraph (1) of Section 6 of Republic Act No. 1828, as amended

- Importance of Surigao Mineral Reservation development for national economy (Whereas clause)
- Tax exemption for operator expiring on December 31, 1981 (Whereas clause)
- Extension of tax incentives needed due to increased fuel costs and low nickel/cobalt prices (Whereas clause)

Provisions:

- Operator to receive P1.00 per year for services rendered and expenditures incurred (Section 1)
- Operator to receive additional compensation equivalent to a portion of gross annual receipts from minerals, mineral products, and by-products, such that the Government retains not less than 3.5% of gross annual receipts f.o.b. point of exports (Section 1)
- Operator exempt from all taxes, duties, fees, and charges, both national and local, until December 31, 1983, except those provided in the Act and fees/charges for services rendered to the operator (Section 1)
- Operator to put the area into actual production within 5 years from contract effective date; penalties may apply for failure to produce within agreed time period (Section 1)
- Tax exemptions do not extend to taxes due from operator's personnel in their personal capacities (Section 1)
- Repeals, modifies, or amends inconsistent provisions of Republic Act No. 1828, Memorandum of Agreement, Operating Contract, and other laws (Section 2)
- Decree takes effect immediately (Section 3)