Question & AnswerQ&A (Republic Act No. 8700)
Davao Agritech, Inc., including its successors or assigns, is granted the franchise under Republic Act No. 8700.
The franchise covers domestic air spraying and passenger and cargo air charter transport services with Davao as its major hub.
Maintenance and operation of hangars and aircraft service stations and facilities, and other similar services necessary, convenient, or useful as auxiliary to air spraying services.
The grantee has the right to construct, operate, and maintain wireless telegraphy stations or transmitting sets for wireless communication and other radio aids to air navigation, used solely for receiving and transmitting weather forecasts and other matters related to its services.
Except in cases of force majeure and when weather conditions do not permit, the grantee must maintain air spraying and passenger and cargo air charter transport services within Davao and throughout the Philippines as traffic needs may require.
The Civil Aeronautics Board and other proper regulatory agencies of the government regulate and approve the rates fixed by the grantee.
The grantee is authorized to enter into air spraying and air spraying maintenance and/or servicing contracts, transportation contracts including carrying mails, and other contracts relating to air transport activities, giving preferential consideration to contracts with the Philippine government.
The grantee must pay taxes on real estate, buildings, and personal property as other entities do, plus either the value-added tax under Republic Act No. 7716 (as amended) or a franchise tax of 5% per annum on gross receipts from air spraying and air transport business, whichever is higher. The grantee is also liable for income taxes under the National Internal Revenue Code.
The grantee must file tax returns with, and pay taxes to, the Commissioner of Internal Revenue or his authorized representatives.
The Act took effect fifteen (15) days after its publication in at least two newspapers of general circulation and lapsed into law on July 09, 1998, without the President's signature.