Amendment of Prior Executive Orders on Price Ceilings
- The Executive Order amends several previous executive orders (Nos. 331, 343, 374, 381, 382, 410) related to price ceilings.
- Sections providing ceiling prices for Spices and Tea are eliminated from certain executive orders, effectively removing price controls on these commodities.
New Ceiling Prices for Pneumatic Tires
- Sets detailed wholesale and retail ceiling prices for various pneumatic tires, categorized by:
- Type: Conventional Passenger Car, Extra Low Pressure, Highway Type for Trucks and Buses, Extra Tread, Traction Type, Logging & Rock Service, Earthmover, Road Grader, Farm Tractor tires.
- Ply rating (4-ply, 6-ply, 10-ply, etc.) and sizes ranging from 4.50-12 to 21.00-25 inches.
- Distinguishes black tires from white sidewall tires, with specific price ceilings for each type and size.
- Prices are fixed with inclusion of 7% Sales Tax and 1% Municipal Tax.
- The price ceilings apply throughout the Philippines.
Removal of Price Ceilings on Spices
- Ceiling prices on spices are removed by amendment of prior orders, effectively ending government-fixed maximum prices on spices.
Effectivity and Implementation
- The order takes effect immediately upon signing.
- Signed in Manila by President Elpidio Quirino and confirmed by Executive Secretary Teodoro Evangelista.
Important Legal Concepts and Provisions
- Price ceiling imposition is a temporary and extraordinary measure under Republic Act No. 509 to control inflation or price gouging.
- The order reflects government intervention in the market to regulate prices of essential goods, specifically pneumatic tires and formerly spices and tea.
- Removal of ceilings for spices and tea indicates adjustment of governmental control reflecting market or administrative considerations.
- Inclusion of taxes in fixed ceiling prices clarifies total consumer cost ceilings.
- Nationwide applicability mandates uniform pricing ceilings across regions.
- The detailed schedule of tire prices provides transparency and guides sellers and buyers on lawful maximum prices, mitigating illegal price escalation or underpricing.
Procedural Compliance
- The President acts on the recommendations of the Price Administration Board when issuing amendments and fixing prices.
- Amendments are clearly articulated by referencing specific sections and dates of prior Executive Orders for precise legal clarity and amendment scope.