WHEREAS, on November 9, 1970, Republic Act No. 6146 was enacted extending the term of the franchise of the PLDT for 25 years from the date of its expiration;
WHEREAS, the average franchise tax for telephone corporations and power companies is 2%;
WHEREAS, it is the policy of the government to rationalize the taxes on private corporations;
WHEREAS, the Philippine Long Distance Telephone Company has committed itself to a massive service improvement and expansion program involving P4.6 billion through 1982 which is designed to:
WHEREAS, the Philippine Long Distance Telephone Company should now pay double its original 1% franchise tax;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order:
SECTION 1. The provisions of existing law to the contrary notwithstanding, the Philippine Long Distance Telephone Company, its successors and assigns, shall pay a franchise tax at the rate of two per centum of all gross receipts of the telephone or other electrical transmission business transacted under its franchise, effective immediately upon the issuance of this Decree and up to the end of the twenty-five years extended term of its franchise under Republic Act No. 6146; Provided, That, except for the change in the rate of franchise tax herein prescribed, it shall be subject to the same terms and conditions as already provided for under existing laws.
SEC. 2. Any provisions of laws, decrees, orders, rules and regulations inconsistent herewith are hereby repealed or modified accordingly.
SEC. 3. This Decree shall take effect immediately.
Done in the City of Manila, this 11th day of June, in the year of Our Lord, nineteen hundred and seventy-eight.
(Sgd.) FERDINAND E. MARCOS
President of the Philippines
By the President:
(Sgd.) JACOBO C. CLAVE Presidential Executive Assistant