DOJ Opinion No. 120, s. 1992

DOJ OPINION NO. 120 , s. 1992 September 22, 1992 The Executive Director/Commissioner National Commission for Culture and the Arts Plaza San Luis Complex Intramuros, Manila M a d a m : This refers to your request for interpretation of Section 20[a][2] and [f][3] of Republic Act No. 7356 creating the National Commission for Culture and the Arts ("NCCA"). prcd The abovecited subsections of law read: "SEC. 20. The National Endowment Fund for Culture and the Arts . A National Endowment Fund for Culture and the Arts (the Fund) is hereby established exclusively for Philippine art and cultural programs, projects and activities and all over the country. a) The contribution to the Fund shall be the following: xxx xxx xxx 2) ten percent (10%) of the travel tax collection, the share to be taken from the annual allotment of the travel tax given to the Philippine Tourism Authority. prLL xxx xxx xxx f) The Commission shall be the administrator of the Fund, and as such, shall prepare implementing guidelines and decision-making mechanisms, subject to the following: xxx xxx xxx 3) not more than twenty percent (20%) of the Government's annual contribution to the Fund shall be devoted to administrative functions of the Commission; at least ten percent (10%) shall be earmarked as part of the Fund's capital, and the balance shall be used for its programs and projects." (Emphases supplied) With respect of Section 20[a][2], it is the NCCA's belief that the ten percent mentioned therein refers to the total travel tax collection, whereas the Philippine Tourism Authority maintains that such percentage relates only to its share in the travel taxes. It is a rule of statutory construction that the legislative intent behind a statutory provision should be taken from the language employed therein (Aparri vs. Court of Appeals, 127 SCRA 231). Section 20[a][2] states that one of the two contributions to the National Endowment Fund for Culture and the Arts (the "Fund") shall be "ten per cent (10%) of the travel tax collection". The modifying clause, "the share to be taken from the annual allotment of the travel tax given to the Philippine Tourism Authority", does not qualify the percentage stated in the main provision, but merely describes the source of such share. Thus it is believed that of the total collection of travel taxes in a year, ten percent (10%) of such collection shall be given to the Fund and that such percentage shall be taken from the Philippine Tourism Authority's share of the travel tax collection allotted by law. Regarding Section 20[f][3], the phrase "Government's annual contribution to the Fund" can have reference only to the ten percent (10%) share of the Fund in the annual travel tax collection; it cannot refer to the P100 million contribution of the PAGCOR since, for one thing, the said corporation is required to make a one-time contribution, although payable over a 20-month period. Besides, Section 20[f] [2] prohibits the use of the seed capital of the Fund, meaning the PAGCOR's P100 million contribution, "to underwrite overhead expenses for administration". Indeed, the evident intention of Section 20 [f][3] is to restrict the use of fund resources for the NCAA's administrative operations. Conformably with such intent, the phrase "Government" should likewise be given a restricted meaning, namely, that it does not include the PAGCOR, which after all, has a corporate personality distinct and separate from the Philippine Government. prcd Wherefore, this Office is of the view (1) that under Section 20[a][2] of R.A. No. 7356, ten percent (10%) of the annual travel tax collection shall be given to the Fund and that such share shall be taken from the allotment of the Philippine Tourism Authority from such tax collection; and (2) that for purposes of defraying administrative expenses, the NCCA can use only twenty per cent (20%) of its aforesaid share in the travel tax collection. LexLib Very truly yours, (SGD.) FRANKLIN M. DRILON Secretary