DOJ Opinion No. 076, s. 1986

DOJ OPINION NO. 076 , s. 1986 July 9, 1986 Mr. Arthur J. Millare Veterans Terminals, Inc. 2nd Floor Union Cement Bldg. Port Area, Manila Sir : This refers to your letter, in behalf of the Iglesia ni Cristo, raising the following questions: 1. Whether the Iglesia ni Cristo is still entitled to the tax-exemption granted by the previous Administration on materials and equipment donated by foreign congregations abroad for its exclusive religious use; and 2. Whether Presidential Decree No. 1504 (June 11, 1978), entitled "Extending The Franchise of the Philippine Radio Educational and Information Center, Inc. (Radio Veritas) and For Other Purposes" has been repealed. The above questions have arisen in view of a partial shipment of a donation of 1,000 pieces door lock sets for installation in various chapels, which is still pending release in view of the inability of the Bureau of Customs to resolve the claim for tax-exemption by the Iglesia ni Cristo. It appears that there are other donated equipment and articles for the FELIX Y. MANALO (FYM) CENTENNIAL that are expected. In this connection, it is stated that the tax-exemption privilege "has long been enjoyed by other religious Sectors in the country" citing P.D. No. 1504 (June 11, 1978). Section 105 of Presidential Decree No. 1464 (June 11, 1978), otherwise known as the Tariff and Customs Code of 1978, provides that there shall be no exemptions whatsoever from the payment of customs duties except those specified thereunder. It reads, insofar as pertinent, as follows: "SECTION 105. Conditionally . Free Importations. xxx xxx xxx " The provisions of general and special laws, including those granting franchises, to the contrary notwithstanding, there shall be no exemptions whatsoever from the payment of customs duties except those provided for in this Code; those granted to government agencies, instrumentalities or government-owned or controlled corporations with existing contracts, commitments, agreements, or obligations (requiring such exemption) with foreign countries; international institutions, associations or organizations entitled to exemption pursuant to agreements or special laws; and those that may be granted by the President upon prior recommendation of the National Economic and Development Authority in the interest of national economic development." (Emphasis ours) As borne out by the marginal note of the President "Tax exemption requested approved" on the 1st Indorsement dated May 8, 1984, of the Minister of Finance, the claim of tax exemption by the Iglesia ni Cristo was based on the approval of the President, presumably pursuant to the last exception in Section 104, above-quoted. Having been initially granted by the President pursuant to law, there is no reason why the exemption should cease, although in view of the change in the national leadership, said grant of tax exemption is subject to review or confirmation by the President. Until revoked, the exemption continues to be valid. With respect to P.D. 1504, Section 3 of which specifically grants to Radio Veritas exemption from prepayment of taxes, customs duties and other similar charges on the importations of equipment, spare parts and supplies to be actually, directly, and exclusively used in and for its radio broadcast or telecast operations, we are not aware of any issuance repealing the same. It is noted that P.D. No. 1504 and P.D. No. 1464 were both enacted on June 11, 1978. prcd Following the rule observed in the case of conflict between general and special provision of law which is expressed in the maxim, generalia specialibus non derogant (a general provision does not affect or annul a more specific or particular provision), the special provision must be taken as intended to constitute an exception to the general rule, as it is presumed that no conflict was intended (Gonzaga, "Statutes and Their Construction",) 1969 ed., p. 232; Op. No. 42, s. 1975; Op. No. 152, s. 1982). In this case, Section 3 of P. D. No. 1504 being the special provision should prevail. It bears emphasis, however, that the tax exemption granted to the Philippine Radio Educational and Information Center, Inc., is given "in consideration of its outstanding public service in the fields of education, culture an public information, and in consideration of the equal value of the free use of its facilities including radio broadcast firms by the Philippine Government", and the exemption is limited to "equipment and supplies actually, directly and exclusively used in and for its radio broadcast or telecast operations, as certified by the Secretary of Public Information" at the instance of the President of said Corporation (Sec. 3). Clearly, the tax benefit is not given to the corporation because of its involvement in religious affairs. Very truly yours, (SGD.) NEPTALI A. GONZALES Minister of Justice