Question & AnswerQ&A (Republic Act No. 987)
The main purpose of Republic Act No. 987 is to amend Section Two of Republic Act No. 358 by withdrawing the exemption granted to the National Power Corporation (NPC) from paying real estate tax.
The exemption from paying real property tax (real estate tax) is withdrawn from the National Power Corporation by Republic Act No. 987.
After the amendment, the National Power Corporation is exempt from all taxes except real property tax, and from all duties, fees, imposts, charges, and restrictions of the Republic of the Philippines, its provinces, cities, and municipalities.
Section Two of Republic Act No. 358 was amended by Republic Act No. 987.
Republic Act No. 987 took effect upon its approval on June 2, 1954.
The exemption was withdrawn to facilitate the payment of the National Power Corporation's indebtedness.
The exemption provision mentions taxes, duties, fees, imposts, charges, and restrictions imposed by the Republic of the Philippines and its provinces, cities, and municipalities.
No, the amendment only removes the exemption from real property tax; the National Power Corporation remains exempt from other duties, fees, imposts, charges, and restrictions.
Section One specifies the amendment to Section Two of Republic Act No. 358, clearly defining the extent of the National Power Corporation's tax exemptions.
No, Republic Act No. 987 does not provide any penalty provisions; it only amends the exemption status concerning real property tax.