Amending Department Order No. 137-87 Implementing Section 4(3), Article XIV of the New Constitution

June 16, 1988 DOF DEPARTMENT ORDER NO. 092-88 SUBJECT : Amending Department Order No. 137-87 Implementing Section 4(3), Article XIV of the New Constitution SECTION 1. Section 1 of Department Order No. 137-87 dated December 16, 1987 is hereby amended to read as follows: "SEC. 1. SCOPE " "This set of guidelines shall govern the availment of exemption from the payment of internal revenue taxes and customs duties provided for under the National Internal Revenue Code and the Tariff and Customs Code, both as amended, AND, IN APPROPRIATE CASES, LOCAL TAXES PURSUANT TO THE LOCAL TAX CODE, AS AMENDED ." SECTION 2. Section 1 thereof is further amended by adding the following provisions: "1.9 Local Tax means an imposition by local government units in the exercise of their taxing and other revenue-raising powers under the Local Tax Code, as amended . The term does not include "fees" and "other charges" imposed by local government units by virtue of their police power for purposes of regulation, inspection and surveillance . It does not likewise include real property tax imposed under the Real Property Tax Code, as amended ." cd SECTION 3. Section 2 of the said Department Order is likewise amended to read as follows: "SEC. 2. COVERAGE OF EXEMPTION UNDER SECTION 4(3), ARTICLE XIV OF THE NEW CONSTITUTION " "The exemption herein contemplated refers to internal revenue taxes and customs duties, in appropriate cases, imposed by the national government AND IN CERTAIN CASES TO LOCAL TAXES IMPOSED BY LOCAL GOVERNMENT UNITS UNDER THE LOCAL TAX CODE on all revenues and assets of non-stock, non-profit educational institutions used actually, directly and exclusively for educational purposes." SECTION 4. All orders, circulars and/or memoranda inconsistent herewith are hereby revoked or amended accordingly. aisadc SECTION 5. This Order shall take effect immediately. (SGD.) VICENTE R. JAYME Secretary