Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1528)
The main purpose of Presidential Decree No. 1528 is to increase the franchise tax of the Philippine Long Distance Telephone Company (PLDT) from one percent to two percent of its gross receipts.
PLDT was originally granted its franchise under Act No. 3436 for a period of 50 years starting November 28, 1928.
Republic Act No. 6146 extended the franchise term of PLDT for an additional 25 years from the date of expiration of the original franchise.
The new franchise tax rate imposed on PLDT is two percent of its gross receipts, effective immediately upon the issuance of the decree on June 11, 1978.
No, the decree specifies that PLDT shall still pay the same taxes on its real estate, buildings, and personal property as before.
The government policy is to rationalize taxes on private corporations by standardizing tax rates, such as increasing the franchise tax rate of PLDT in line with the average rate of similar corporations.
PLDT committed to a P4.6 billion program through 1982 to expand telephone lines, modernize equipment, introduce new subscriber services, improve service quality, and establish service in new rural areas among others.
Yes, Section 2 states that any provisions of laws, decrees, orders, rules, and regulations inconsistent with this decree are repealed or modified accordingly.
The decree took effect immediately upon its signing on June 11, 1978.
President Ferdinand E. Marcos signed the decree, exercising the powers vested in him by the Constitution as President of the Philippines.