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

President Ramon Magsaysay grants the National Rice and Corn Corporation (NARIC) exemption from paying the 17% excise tax on foreign exchange used for rice importation, in accordance with Republic Act No. 663, due to public interest and welfare.

foreign exchange

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Relevant Existing Laws and Their Provisions

Republic Act No. 601, amended by Republic Act No. 1175, imposes a 17% excise tax on foreign exchange used for rice importation.
Republic Act No. 663, Section 5(b), exempts NARIC from sales and milling taxes and empowers the President to grant additional tax exemptions in the public interest.

Authority to Grant Exemption

The President of the Philippines is vested with authority under Section 5(b) of RA 663 to exempt NARIC from certain taxes.
Such exemption is discretionary and must be justified by considerations of public interest and welfare.

Specific Exemption Granted

NARIC is exempted from the payment of the 17% excise tax on foreign exchange used for paying costs related to rice importation.
This includes the payment of the cost of rice, transportation costs, and other incidental charges.

Policy Rationale

The exemption is grounded on the public interest and welfare, underscoring the importance of rice importation for the Filipino people.
It acknowledges the role of NARIC in ensuring the availability and affordability of rice.

Formalization and Effectivity

The exemption is formalized through an Executive Order signed by the President.
The order was dated July 10, 1954, and is legally binding from that date.

Legal and Administrative Implications

NARIC benefits from reduced financial burden in the importation process.
The exemption supports government policy aimed at stabilizing rice supply and prices.
Other agencies must recognize this exemption and allow NARIC to operate without the imposed excise tax on foreign exchange related to rice imports.

END