Amending Section 12 of P.D. No. 1869 Re: Franchise and Powers of PAGCOR
Presidential Decree No. 1993, issued on October 31, 1985, amends Section 12 of Presidential Decree No. 1869, concerning the Philippine Amusement and Gaming Corporation (PAGCOR). The decree mandates that after a 5% franchise tax, 50% of PAGCOR's gross earnings (or 60% if earnings are below P150,000,000) be allocated to the General Fund. These funds are designated for priority infrastructure projects and the restoration of facilities damaged by calamities, supporting the government's economic recovery efforts. The decree takes immediate effect and reflects the government's strategy to utilize casino earnings for public welfare.
October 31, 1985
PRESIDENTIAL DECREE NO. 1993
AMENDING SECTION TWELVE OF PRESIDENTIAL DECREE NO. 1869 CONSOLIDATING AND AMENDING PRESIDENTIAL DECREE NOS. 1067-A, 1067-B, 1067-C, 1399, AND 1632, RELATIVE TO THE FRANCHISE AND POWERS OF THE PHILIPPINE AMUSEMENT AND GAMING CORPORATION (PAGCOR)
WHEREAS, over the past few years, the government share in casino earnings has financed the construction and establishment of various infrastructure and socio-civic projects throughout the Philippines which have contributed to the improvement in the quality of life of the people;
WHEREAS, the adverse economic conditions obtaining in the country during the last two years markedly affected the government's capability to raise adequate revenues to fund its operations and meet its obligation commitments; cdt
WHEREAS, in order to support the government's economic recovery program that is now in place, there is an urgent need to prime the economy by allocating more funds to complete and finish priority infrastructure development projects which are necessary ingredients to insure the success of the program;
WHEREAS, the government share from casino operations can be utilized as a source of funds to finance the priority infrastructure development projects and to finance the restoration of damaged or destroyed facilities due to calamities. aisa dc
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 12 of Presidential Decree No. 1869 is hereby amended to read as follows:
"Sec. 12. Special Condition of Franchise. — After deducting five (5%) percent as Franchise Tax, the fifty (50%) percent share of the government in the aggregate gross earnings of the Corporation from this Franchise, or 60% if the aggregate gross earnings be less than P150,000,000.00, shall immediately be set aside and shall accrue to the General Fund to finance the priority infrastructure development projects and to finance the restoration of damaged or destroyed facilities due to calamities, as may be directed and authorized by the Office of the President of the Philippines. aisa dc
SECTION 2. This Decree shall take effect immediately.
DONE in the City of Manila, this 31st day of October, in the year of Our Lord, Nineteen Hundred and Eighty-Five. acd
Published in the Official Gazette, Vol. 81 No. 46 Page 5315 on November 18, 1985.