Responsibility to the Public
- The grantee must maintain air spraying and air charter services within Davao and across the Philippines as required by traffic need.
- Obligations are subject to exceptions for force majeure and permissible weather conditions.
Rates for Services
- The grantee is empowered to set just and reasonable rates for all air spraying, passenger, and cargo air charter operations.
- Such rates are subject to regulation and approval by the Civil Aeronautics Board and other applicable government agencies.
Contractual Authority
- The grantee may enter into contracts related to air spraying and maintenance or servicing thereof.
- It may also engage in air transport contracts, including mail carriage.
- Preferential consideration must be given to contracts with the Philippine Government.
Tax Provisions
- The grantee shall pay taxes on real estate, buildings, and personal property similarly to other persons or corporations.
- Must pay either the value-added tax under Republic Act No. 7716 or a franchise tax of 5% on gross receipts from the business, whichever is higher.
- The franchise tax rate may be adjusted by law.
- Income tax liabilities under existing laws remain applicable unless amended or repealed.
- Tax filings and payments are made with and subject to audit by the Bureau of Internal Revenue.
Effectivity Clause
- The act takes effect 15 days after publication in at least two newspapers of general circulation.
- It lapsed into law on July 9, 1998, without the President's signature, per constitutional provision.