Title
Fixing Ceiling Prices of Commodities
Law
Executive Order No. 516
Decision Date
Jul 1, 1952
President Elpidio Quirino issues Executive Order No. 516, establishing maximum selling prices for essential commodities, including various types of pneumatic tires, to regulate market prices and protect consumers.

Scope and Commodities Covered

  • The Executive Order specifically applies to essential commodities, with a focus on pneumatic tires.
  • Includes various types and sizes of tires such as conventional passenger car tires and premium grade tires.
  • Prices are fixed for both wholesalers and retailers.

Ceiling Prices and Specific Limits

  • Detailed maximum selling prices are set for different types and sizes of pneumatic tires.
  • Prices are denominated per unit and vary depending on tire specifications (e.g., ply rating, size).
  • Both wholesaler and retailer prices are explicitly stated.

Tax Inclusions in Ceiling Prices

  • The ceiling prices include a 17% Special Excise Tax on Foreign Exchange.
  • Additionally, they cover a 7% Sales Tax and a 1% Municipal Tax.
  • These tax inclusions indicate no additional tax burden beyond the fixed ceiling price.

Effectivity and Implementation

  • The Order takes effect immediately upon issuance.
  • It is an official directive signed by the President and the Acting Executive Secretary.
  • The setting of prices aims to control inflation and protect consumers and the economy from price gouging during the given period.

Important Legal Concepts

  • Utilization of executive authority for economic regulation under a specific legislative grant.
  • Price ceiling as a mechanism to stabilize the market and prevent excessive pricing.
  • Inclusion of specific taxes within the price ceiling to ensure transparency and prevent price manipulation.
  • The regulatory framework mandates compliance by wholesalers and retailers within the stipulated price limits.

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