Law Summary

SECTION 1: Amendment of Section 15 of Republic Act No. 632

• Legal Principle/Provision: This section amends the capitalization provisions regarding the Sugar Research and Stabilization Fund, which is a financial resource for the Philippine Sugar Institute.

• Key Definitions Introduced:

  • Sugar Research and Stabilization Fund: A fund intended to support sugar research and stabilization efforts within the industry.

• Important Requirements or Procedures Outlined:

  • Tax Proceeds Allocation:
    • 50% of the Percentage Tax Proceeds: These proceeds from the percentage tax levied on sugar central operators will accrue to the Sugar Research and Stabilization Fund upon the Act's approval.
    • Discretionary Transfer: The Philippine Sugar Institute may transfer a portion of the remaining 50% of the proceeds as annual aid to the Sugar Quota Administration for specific operational purposes.
  • Payment Requirement: The percentage tax is to be considered a lien on sugar quedans and/or warehouse receipts and must be paid immediately to the Commissioner of the Bureau of Internal Revenue.

• Relevant Timeframes, Deadlines, or Expiration Details:

  • The provisions take effect immediately upon the approval of the Act, which was approved on June 17, 1961.

• Penalties, Liabilities, or Consequences Mentioned:

  • There is a restriction that not more than 50% of all proceeds from the tax can be used for salaries of officials and employees.

• The amendment aims to enhance the funding mechanism for the Sugar Research and Stabilization Fund. • It delineates the tax structure and its direct implications for the Sugar Quota Administration. • The Act emphasizes the immediate payment of the tax and its treatment as a lien.

SECTION 2: Effectivity Clause

• Legal Principle/Provision: This section states that the Act will take effect upon its approval.

• The Act's provisions become effective immediately following the legislative approval date.

Key Takeaways

• Republic Act No. 3051 amends the capitalization provisions of the Philippine Sugar Institute by clarifying tax allocations to the Sugar Research and Stabilization Fund.
• It specifies the use of tax proceeds and the conditions under which the Philippine Sugar Institute can aid the Sugar Quota Administration.
• The Act provides for immediate effectivity upon approval, emphasizing prompt compliance with tax payments.
• A crucial limitation is placed on the use of funds for salaries, ensuring that a significant portion is allocated towards operational and research activities within the sugar industry.