Legal basis for price fixing
- Section 3 of Republic Act No. 509 authorizes the President, for a limited period, to fix ceiling prices of commodities and promulgate rules and regulations regarding prices to effectuate national policy.
- The President issues Executive Order No. 613 upon recommendation of the Price Administration Board.
- The Order is issued “for other purposes” in addition to amending Executive Order No. 448.
Purpose: revised ceiling prices
- Section 1 reduces and sets new ceiling prices for galvanized roofing nails.
- Section 1 establishes new ceiling prices specifically for galvanized roofing nail sizes identified by gauge and dimensions.
- Executive Order No. 613 directly modifies the ceiling-price structure originally set under Executive Order No. 448.
Coverage and controlled commodities
- The ceiling prices revised in Section 1 apply to construction materials (imported).
- The controlled commodities are galvanized roofing nails with the specified sizes and gauges.
- The ceiling prices apply under the pricing scheme labeled “With 17 per cent Special Excise Tax on Foreign Exchange.”
- The Order provides separate ceiling prices for wholesaler’s price and retailer’s price.
New ceiling prices by nail size
- Section 1 sets the ceiling price for galvanized roofing nails 2 A12a x 6 to 7 BWG (unit: kilo) as follows:
- Wholesaler’s price: P1.05
- Retailer’s price: P1.15
- Section 1 sets the ceiling price for galvanized roofing nails 2a3 x 8 BWG (unit: kilo) as follows:
- Wholesaler’s price: P1.05
- Retailer’s price: P1.15
Tax inclusion within ceiling prices
- Section 2 provides that the ceiling prices fixed in Executive Order No. 613 include:
- 17 per cent special excise tax on foreign exchange
- 7 per cent sales tax
- 1 per cent municipal tax
- The inclusion rule applies to the ceiling prices established for galvanized roofing nails under Section 1.