Lowering The Cost To Consumers Of Electricity By Reducing The Franchise Tax Payable By Electric Franchise Holders And The Tariff On Fuel Oils For The Generation Of Electric Power By Public
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Lowering The Cost To Consumers Of Electricity By Reducing The Franchise Tax Payable By Electric Franchise Holders And The Tariff On Fuel Oils For The Generation Of Electric Power By Public
Presidential Decree No. 551
September 11, 1974
Case Overview and Summary
Summary of Presidential Decree No. 551Lowering the Cost of Electricity to Consumers
- Reduces the franchise tax payable by electric franchise holders to 2% of their gross receipts from the sale of electric current and related transactions (Section 1)
- Lowers the tariff rate on imported crude oil used as fuel for generating electric power by public utilities to 10% ad valorem (Section 2)
- Allows a refund or tax credit of up to 50% of the duty paid on crude oil imported by non-electric utilities but sold to electric utilities for power generation (Section 3)
- Requires electric franchise holders to pass on the savings from tax and tariff reductions to consumers (Section 4)
- Authorizes the Secretary of Finance to promulgate rules and regulations, devise a reporting system, and impose penalties for non-compliance (Section 4)
- Penalties for violation include a fine of up to P50,000 and imprisonment of up to 6 months, as well as compulsory price or rate reduction (Section 4)
- Took effect immediately upon issuance on September 11, 1974 (Section 5)
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Executive Issuances
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electric franchise holders
franchise tax
gross receipts
electric current
tariff
crude oil
fuel oils
electric power generation
public utilities
tax credit
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Lowering The Cost To Consumers Of Electricity By Reducing The Franchise Tax Payable By Electric Franchise Holders And The Tariff On Fuel Oils For The Generation Of Electric Power By Public
Presidential Decree No. 551
•September 11, 1974
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 551
LOWERING THE COST TO CONSUMERS OF ELECTRICITY BY REDUCING THE FRANCHISE TAX PAYABLE BY ELECTRIC FRANCHISE HOLDERS AND THE TARIFF ON FUEL OILS FOR THE GENERATION OF ELECTRIC POWER BY PUBLIC UTILITIES
WHEREAS, the grantees of electric franchises are unable to reduce their rates due to their high cost of operation;
WHEREAS, there is a need to proved electric current for light, heat and power at a cost within the reach of consumers;
WHEREAS, assistance to the franchise holders by reducing some of their tax and tariff obligations is imperative to attain the above objectives;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers 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 shall be two (2%) of their gross receipts received from...
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Amends
n/a
Amended by
n/a
Tags
Executive Issuances
Presidential Decrees
electric franchise holders
franchise tax
gross receipts
electric current
tariff
crude oil
fuel oils
electric power generation
public utilities
tax credit
refund
duty
cost reduction
consumers
rules and regulations
reporting system
penalties
fines
imprisonment
price reduction
rate reduction
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 551
LOWERING THE COST TO CONSUMERS OF ELECTRICITY BY REDUCING THE FRANCHISE TAX PAYABLE BY ELECTRIC FRANCHISE HOLDERS AND THE TARIFF ON FUEL OILS FOR THE GENERATION OF ELECTRIC POWER BY PUBLIC UTILITIES
WHEREAS, the grantees of electric franchises are unable to reduce their rates due to their high cost of operation;
WHEREAS, there is a need to proved electric current for light, heat and power at a cost within the reach of consumers;
WHEREAS, assistance to the franchise holders by reducing some of their tax and tariff obligations is imperative to attain the above objectives;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers 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 shall be two (2%) of their gross receipts received from...
Login to see full content