Franchise Tax Payment and Exclusivity
- The transferee, Ormoc Electric Company, Inc., is required to pay a franchise tax to the National Treasury equal to 2% of its gross earnings from electric current sold under the franchise.
- This 2% franchise tax is declared to be the sole tax imposed on the transferee in relation to its capital stock, franchise, rights, privileges, earnings, profits, and all other properties operated under this franchise.
- No other municipal, provincial, city, or national taxes shall be levied, assessed, or collected against the transferee aside from the specified 2% franchise tax.
- This exclusivity of the franchise tax provision applies both upon the approval of the Act and going forward.
Effectivity
- The Act shall take effect immediately upon its approval, which was on June 16, 1962.