Imposing an Economic Stabilization Tax

June 6, 1984

PRESIDENTIAL DECREE NO. 1929

IMPOSING AN ECONOMIC STABILIZATION TAX; PRESCRIBING PENALTIES FOR VIOLATIONS HEREOF AND FOR OTHER PURPOSES

WHEREAS, there is need to complement the stabilization measures adopted to counteract inflationary pressures as a result of the increased peso earnings generated by the latest adjustment in the exchange rate of the peso;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, pursuant to the powers vested in me by the Constitution, do hereby direct and ordain:

SECTION 1. There shall be levied, assessed, collected and paid, an economic stabilization tax in an amount equivalent to the difference between the gross FOB value at the time of shipment based on the guiding rate at the date of shipment and said gross FOB value at the rate of fourteen (P14.00) pesos to one ($1.00) United States dollar, in accordance with the following schedule:

Until September 30, 1984	30%
Until December 31, 1984	25%
Until March 31, 1985	20%
Until June 30, 1985	15%
Until September 30, 1985	10%
Until December 31, 1985	5%

SECTION 2. The tax imposed herein shall be assessed by the Bureau of Customs and collected by the Bureau through authorized agent banks of the Central Bank of the Philippines, not later than thirty (30) days from date of shipment.

SECTION 3. In case the tax prescribed herein is not fully paid at the time specified herein, such tax shall be increased by twenty-five per centum, the increment to be part of the tax and the entire amount shall be payable upon demand or the period specified therein: Provided, That any failure to pay upon demand or within the period specified therein, such tax plus surcharge shall be subject to interest at fourteen per centum per annum computed from the date the demand has been duly served or received or such specified date until the actual payment is made.

SECTION 4.  Any person violating the provisions of this Decree or any regulation promulgated pursuant thereto shall, upon conviction, be fined in an amount not less than ten thousand pesos nor more than fifty thousand pesos and imprisoned for a period not less than six months nor more than five years; Provided, however, that if the offender is a corporation, association or partnership, the penalty shall be imposed upon the president, directors, manager, managing partners, as the case may be, and the persons charged with the administration thereof.

SECTION 5. The Minister of Finance in consultation with the Governor of the Central Bank of the Philippines shall prescribe and promulgate the necessary rules and regulations to carry out the provisions of this Decree.

SECTION 6. Any provision of law or regulations inconsistent herewith is hereby repealed, revoked or modified accordingly.

SECTION 7. If any provision of this Decree or the application of such provision to any person or circumstance is held invalid, the remainder of this Decree and the application of such provision to other persons or circumstances shall not be affected thereby.

SECTION 8. This Decree shall take effect immediately.

DONE in the City of Manila, this 6th day of June, in the year of Our Lord, Nineteen Hundred and Eighty-Four.