ERB NO. 98-06

: The resolution addresses the sea freight rates in relation to the implementation of the Expanded Value Added Tax (EVAT) law and the adjustments on rates to account for EVAT expenses less the 3% common carriers tax.
: Before the effectivity of the EVAT law, the existing sea freight rates included a 3% common carriers tax.
: The Board increased the sea freight rates to allow shipowners to recover their EVAT expenses, but less the 3% common carriers tax.
: EVAT stands for Expanded Value Added Tax, a tax law implemented in the Philippines.
: The EVAT component of the automatic formula is 10%, which is inclusive of the 3% common carriers tax.
: The letter was signed by then Commissioner Arnaldo P. Baldonado.
: The Board resolved to adopt the action previously taken by the former Board Member Arnaldo P. Baldonado regarding the EVAT law.
: The 3% common carriers tax was previously included in the sea freight rates, and under the EVAT law adjustments, it remains a component that must be deducted from the EVAT expenses to avoid double taxation.
: The Board's authority is based on its regulatory power over freight rates and the directives given in ERB cases and resolutions, including the interpretation of tax components like EVAT and the common carriers tax.
: The resolution was adopted by Chairman Neptali S. Franco and Board Members Melinda L. Ocampo, Artemio P. Magabo, and Bernarda C. Lavisores.