Title
Amending tax exemption of National Power Corp.
Law
Republic Act No. 987
Decision Date
Jun 2, 1954
Republic Act No. 987 amends Republic Act No. 358 to require the National Power Corporation (NPC) to pay real property tax, while still exempting the NPC from all other taxes, duties, fees, imposts, charges, and restrictions imposed by the Philippines.

Scope and Application of Tax Exemptions

  • The amendment clarifies the scope of tax exemptions applicable to the National Power Corporation.
  • The exemption applies to all taxes except the real property tax.
  • Duties, fees, imposts, charges, and other restrictions by national or local government authorities continue to be exempted.

Legal Effectivity and Implementation

  • The law takes effect immediately upon approval.
  • Ensures the National Power Corporation is liable to pay real property tax despite other tax exemptions.

Key Legal Provisions

  • Withdrawal of exemption specifically targets real estate tax obligations of the National Power Corporation.
  • Maintains the corporation's tax-free status on other financial obligations to facilitate its indebtedness payment.

Important Legal Concepts

  • Tax exemption is selectively applied to balance government revenue interests with supporting a government-owned corporation.
  • Real property tax liability enhances fiscal contributions from the National Power Corporation to local government units where properties are located.
  • The amendment reflects legislative intent to provide financial relief while ensuring local tax revenues are not unduly diminished.

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