Bureau of Local Government Finance Opinion

April 15, 1993 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Mr. Jacinto & Quileterio Managing Director Modern Gas and Appliance Corp. CCC Bldg., 563 Osmea Blvd. Cebu City S i r : This refers to your letter dated February 1, 1993 in behalf of the LPG dealers of the city and province of Cebu requesting clarification whether the exemption from paying taxes on the sale of LPG pursuant to Finance Circular 26-73 dated December 27, 1973 as promulgated by the Secretary of the Department of Finance is still valid or enforceable. In this connection, please be informed that upon the effectivity of the Local Government Code of 1991, (R.A. No. 7160) on January 1, 1992 the tax exemption or incentive granted to, or presently enjoyed by all persons, whether natural or juridical are withdrawn pursuant to the provisions of Sec. 193 of the said code as implemented under Art. 283 of the Implementing Rules and Regulations of the Code quoted hereunder: "Art. 283. Withdrawal of Tax Exemption Privileges or Incentives . Unless otherwise provided for in this Rule, beginning January 1, 1992, all local tax exemption privileges or incentives granted to and presently enjoyed by any person, whether natural or juridical, including government-owned and-controlled corporations, are considered withdrawn except the following: "(a) Local water districts; "(b) Cooperatives duly registered under RA 6938 (Cooperative Code of the Philippines; cdt "(c) Non-stock and non-profit hospitals and educational institutions; "(d) Business enterprises certified by the Board of Investments (BOI) as pioneer or non-pioneer for a period of six (6) and four (4) years, respectively, from the date of registration; "(e) Business entity, association, for cooperatives registered under RA 6810, otherwise known as the Magna Carta for Countryside and Barangay Business Enterprises or Kalakalan 20; and "(f) Printer and/or publisher of books or other reading materials prescribed by the Department of Education, Culture and Sports (DECS) as school texts or reference, insofar as receipts from the printing and/or publishing thereof are concerned. acd Unless otherwise repealed by law, business and economic enterprises operating within export processing zones administered by the Export Processing Zone Authority shall continue to enjoy the tax incentives and tax exemption privileges enjoyed under the provisions of PD 66, as amended." It is hoped that this clarifies matters. Very truly yours, By Authority of the Secretary: (SGD.) LORINDA M. CARLOS Executive Director Bureau of Local Government Finance