Exemption of NARIC from 17% Excise Tax on Rice Imports

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EXECUTIVE ORDER NO. 46: Exemption of NARIC from 17% Excise Tax on Rice Imports

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Title Supreme Court: Exemption of NARIC from 17% Excise Tax on Rice Imports

Law: Executive Order No. 46

Decision Date: Jul 10, 1954

Ramon Magsaysay exempts the National Rice and Corn Corporation from a 17% excise tax on foreign exchange for rice importation to promote public interest and welfare.

foreign exchange

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Authority and Legal Basis for Exemption

The National Rice and Corn Corporation (NARIC) is established as a key government entity involved in rice and corn management.
Section 5(b) of Republic Act No. 663 provides for the exemption of NARIC from sales and milling taxes.
Moreover, the President of the Philippines is authorized under the same provision to exempt NARIC from other taxes if deemed in the public interest.

Rationale for the Exemption

The exemption is based on the public interest and the welfare of the people.
Ensuring the affordability and availability of rice justifies relief from the excise tax burden.
The law underscores the importance of NARIC’s role in stabilizing the rice supply and prices.

Specifics of the Tax Exemption

The exemption applies specifically to the seventeen percent (17%) excise tax on foreign exchange.
This foreign exchange is used to cover the cost, transportation, and other charges related to rice importation.
The exemption is limited to transactions undertaken by NARIC.

Legal Effect and Implementation

The law is an executive order signed by the President of the Philippines.
It explicitly exempts NARIC from paying the said excise tax under the authority granted by Republic Act No. 663.
This exemption promotes the effective functioning of NARIC in its mandate concerning rice importation.

Date and Formality

The order was enacted on July 10, 1954, in Manila.
It is signed by President Ramon Magsaysay and countersigned by the Executive Secretary Fred Ruiz Castro.

Important Legal Concepts

The principle of public interest and welfare as grounds for tax exemption.
The presidential power to grant tax exemptions to government entities under specific statutory authority.
The fiscal mechanism of excise tax as applied to foreign exchange in import transactions.
The strategic role of NARIC in agricultural commodity management and price stabilization.

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