Tariffs and Taxes on Imported Leaf Tobacco
- Imported foreign leaf tobacco shall only be subjected to a tariff equivalent to 100% of its landed cost.
- No additional tariffs or taxes beyond this 100% equivalent levy shall be imposed.
Sales and Marketing of Locally Produced Virginia Leaf Tobacco
- All stocks of locally produced Virginia leaf tobacco held by the PVTA are to be sold at the best available prices.
- Proceeds from sales are allocated to pay the PVTA’s debts to farmers, the Farmers’ Cooperative Marketing Association (FaCoMas), and the Central Bank of the Philippines.
Debt Liquidation and Financial Provisions
- The PVTA is tasked with liquidating its indebtedness to the Central Bank within the shortest possible time.
- An extension of five (5) years beyond June 1974 is granted for PVTA to complete payment of the remaining debt balance.
- Surplus funds after debt clearance accrue to the Tobacco Fund established under Republic Act No. 4155.
Trading Operations and Private Enterprise
- PVTA supervised trading operations at trading centers shall continue until December 31, 1973.
- After December 31, 1973, exclusive trading of locally produced Virginia leaf tobacco shall be undertaken by private enterprises.
Price Regulation for Locally Grown Virginia Leaf Tobacco
- Minimum purchase prices for locally grown flue-cured Virginia leaf tobacco are fixed by grade:
- Grade A: ₱3.60
- Grade B: ₱3.00
- Grade C: ₱2.50
- Grade D: ₱2.00
- Grade E: ₱1.50
- The specific criteria for grading are determined by the PVTA.
Repeal and Modification of Existing Laws
- Provisions inconsistent with this decree in Republic Acts Nos. 698, 1194, 2265, 4155, and other legislative enactments are repealed or modified accordingly to harmonize with this decree.
Rulemaking and Enforcement
- The PVTA is empowered and mandated to promulgate the necessary rules and regulations to effectively implement and enforce the provisions of this decree.