Exemption of CCP from PD No. 1931 duties and taxes

The Letter of Instructions is grounded on the President’s constitutional and legal authority to issue executive orders and instructions.
It addresses Presidential Decree No. 1931, which directs the rationalization of tax and duty exemption privileges of government-owned or controlled corporations and other units of the Government.
It maintains the continued application of Presidential Decree No. 1825 with respect to tax liability handling.
It references Presidential Decree No. 15, as amended, as the basis for duty and tax exemption privileges previously granted to the CCP.

The Letter of Instructions anchors its directive on Article XV, Section 9 (2) of the Constitution, which mandates that Filipino culture shall be preserved and developed for national identity and that arts and letters are under the patronage of the State.
It recognizes the Cultural Center of the Philippines (CCP) as the entity that manages the CCP complex and supports government cultural and arts projects, including the National Arts Center, the Museum of Philippine Arts, and other affiliates and subsidiaries.
It provides that withdrawing the CCP’s duty and tax exemption privileges would disrupt the CCP’s financial structure and jeopardize both CCP operations and the projects it supports.

The Letter of Instructions exempts the Cultural Center of the Philippines (CCP) from the operation of Presidential Decree No. 1931.
The exemption covers the CCP’s entitlement to exemption privileges that would otherwise be rationalized under Presidential Decree No. 1931.

The Letter of Instructions requires that the CCP’s business operations remain liable for all taxes.
The Letter of Instructions exempts the CCP from the application of PD No. 1931 on exemptions, while expressly preserving tax liability except for income taxes.
The Letter of Instructions mandates that taxes except for income taxes must be remitted directly to the CCP.
The remittance rule requires that the taxes except for income taxes be remitted instead of being paid directly to the Bureau of Internal Revenue, consistent with Presidential Decree No. 1825.