Question & AnswerQ&A (Republic Act No. 6125)
The primary purpose of Republic Act No. 6125 is to impose a stabilization tax on consignments abroad to accelerate the economic development of the Philippines.
The products subject to the stabilization tax include logs, copra, centrifugal sugar, copper ore and concentrates, molasses, coconut oil, dessicated coconut, iron ore and concentrates, chromite ore and concentrates, copra meal or cake, unmanufactured abaca, unmanufactured tobacco, veneer core and sheets, plywood, lumber, canned pineapples, and bunker fuel oil.
The tax rates on these products vary by fiscal year: 10% from approval date to June 30, 1971; 8% from July 1, 1971, to June 30, 1972; 6% from July 1, 1972, to June 30, 1973; and 4% from July 1, 1973, to June 30, 1974, on the F.O.B. peso proceeds.
The Central Bank of the Philippines, through authorized agent banks, assesses and collects the tax within ten banking hours from the realization (partial or total) of the F.O.B. proceeds of export.
If not fully paid on time, the deficiency is increased by 25% plus 1% for every banking day of delay. If due to false or fraudulent statements, the surcharge increases to 50%. The total amount is collected similarly as the original levy.
Fifty percent of proceeds go to servicing debts and budget deficits, twenty-five percent to counterpart requirements for projects financed by international loans, and twenty-five percent to the Development Bank of the Philippines to fund loans for export industries and agricultural projects.
Violators face fines of ₱10,000 to ₱25,000 and imprisonment from 3 to 6 years. Corporate officers knowing of the violation are liable, and if offenders are bank officers or Central Bank employees, they face additional disqualifications or deportation if aliens.
No, there are no exemptions from the tax under this Act despite other laws to the contrary.
Yes, any Filipino citizen of legal age can initiate civil or criminal actions to enforce the provisions of this Act.
The Act takes effect upon its approval, which was on May 1, 1970.