Stabilization Tax on Export Proceeds

The Central Bank of the Philippines is responsible for assessing and collecting the stabilization tax through authorized agent banks.
Collection is required within ten banking hours from the realization of export proceeds, whether partial or total.
Exporters must convert all foreign exchange proceeds into pesos through authorized banks, under Central Bank regulations.

Unpaid taxes are subject to a surcharge of 25% plus 1% per banking day of delay.
If underpayment results from false or fraudulent acts by the exporter or agent bank, the surcharge increases to 50%.

50% of collections deposited in a Central Bank Special Account for servicing government debts and budget deficit amortization, excluding payments for future government overdrafts.
25% deposited in a Central Bank Special Account for counterpart funding of international loan-financed projects (ADB, IBRD, UN, bilateral agreements).
25% deposited with the Development Bank of the Philippines in a Special Account to provide loans to export industries and agricultural projects, prioritizing processing of raw materials for export.

Within ten days post-approval, the Central Bank must submit and publish certified inventories of government and corporate-held securities and debts.
If inflation risks arise, the Central Bank must avoid increasing its holdings of certain securities and aim to reduce or sell debt evidences it issues.
Quarterly reporting to the President and Congress on securities holdings, debt issuance, money supply, and its changes is mandated.

The Central Bank shall promulgate necessary rules and regulations for implementation.
Rules take effect fifteen days after publication in three newspapers of general circulation, including one in the national language.

Violators shall face fines from 10,000 to 25,000 pesos and imprisonment of three to six years.
Corporate officers or representatives knowingly involved will be held liable as principals.
Commercial bank offenders are subject to permanent disqualification from bank management roles.
Central Bank officers committing violations face additional perpetual public office disqualification.
Alien offenders face deportation after serving sentences.

Any Filipino citizen of legal age may enforce this Act in civil actions, serving as real parties in interest.
Civil suits cannot be dismissed on technical grounds or decided based on compromise agreements.
Courts shall prevent collusion and discourage frivolous suits; consolidation of suits sharing the same cause is mandated.
Intervention rights are granted as per Rules of Court.
Criminal actions may also be initiated by Filipino citizens.

The prevailing exchange rate during the Act’s effectivity applies uniformly to all export receipts.

All prior conflicting laws, executive orders, regulations and circulars are repealed or modified accordingly.

If any provision or application is declared unconstitutional, other provisions and applications remain unaffected.