Expenditure Guidelines and Appropriations
- Fund expenditures require appropriation by law.
- Initial collections (until June 30, 1969) may cover unprogrammed appropriations for science agencies lacking funds.
- Subsequent expenditures must be included in the annual General Appropriations Act.
Additional Tax on Privately Owned Passenger Automobiles, Motorcycles, and Scooters
- Imposes additional tax based on shipping or factory weight of private passenger vehicles:
- 1,000 kilos or less: P35.00
- 1,001 to 1,500 kilos: P100.00
- 1,501 to 2,000 kilos: P250.00
- Above 2,001 kilos: P450.00
- Fixed additional tax for motorcycles and scooters: P15.00.
- Fixed additional tax for jeepneys: P30.00.
- Tax collected alongside vehicle registration fees under R.A. No. 4136 with "Science Tax" indicated on receipts.
Additional Science Stamp Taxes
- Imposes an additional 100% science stamp tax on documentary stamp taxes under National Internal Revenue Code.
- Specific rates on tax clearance certificates:
- First-class passengers: P50.00 per certificate.
- Second or tourist-class passengers: P30.00 per certificate.
- Third-class or steerage passengers: P5.00 per certificate.
- Exemptions:
- No science tax on freight tickets (goods as accompanied baggage on passenger carriers).
- No science tax on certificates issued by notaries or authorized oath administrators.
- Collections follow same procedures and penalties as documentary stamp taxes.
Collection and Management of Funds
- Commissioners of Internal Revenue and Land Transportation Commission must remit collections monthly within first 10 days of succeeding month.
- Collections form part of the Special Science Fund and cannot be diverted or used for other purposes.
- Budget Commissioner and National Treasurer responsible for fund release upon proper authorization by relevant science authorities.
Rule-Making Authority
- Secretary of Finance and Secretary of Public Works and Communications to issue rules for tax collection.
- Chairs of the National Science Development Board and National Research Council granted authority to promulgate implementing rules and adopt science stamp designs.
Reporting Requirement
- Chairs of National Science Development Board and National Research Council must submit annual reports within 15 days from Congressional session start.
- Reports to include accounts of programs, projects, and detailed expenditures funded under this Act.
Duration of the Special Science Fund
- Tax proceeds to form the Fund for five years from the Act’s effectivity.
- After five years, taxes revert to the General Fund unless otherwise legislated.
Penal Provisions
- Failure or refusal to remit collections, delayed or obstructed processes, or diversion of funds punishable by:
- Fine up to P10,000 or imprisonment up to six years, or both at court discretion.
- Government officials guilty face dismissal with prejudice, disqualification for public office.
- Alien offenders subject to deportation after fine payment without further proceedings.
Separability Clause
- Invalidity of any part of the Act does not affect remaining provisions which can operate independently.
Repealing Clause
- All inconsistent laws, orders, and regulations are repealed, amended, or modified to conform with this Act.
Effectivity
- The Act takes effect January 1, 1969.