Law Summary

I. Purpose of the Executive Order

• This Executive Order is enacted to waive the additional progressive taxes applicable to the proprietors and operators of the Pampanga Sugar Mills for the 1948-1949 crop year.
• The decision arises from the recognition that these mills have operated at a loss over the last three crop years.

II. Background and Rationale

• Economic Context: The Pampanga Sugar Mills have faced financial difficulties, resulting in operational losses for three consecutive crop years.
• Impact of Taxation: The imposition of additional progressive taxes would be excessively burdensome and potentially confiscatory for the mills, exacerbating their financial situation.

III. Authority and Recommendation

• The waiver is issued by President Elpidio Quirino based on the recommendation from the Sugar Rehabilitation and Readjustment Commission.
• This order is authorized under Section 2 of Commonwealth Act No. 567.

IV. Implementation

• The waiver is effective specifically for the 1948-1949 crop year, relieving the proprietors and operators of tax obligations during this period.

V. Legal Signatory

• The Executive Order is formally signed by:
  • Elpidio Quirino: President of the Philippines
  • Teodoro Evangelista: Executive Secretary

VI. Cross-Reference

• The Executive Order references Commonwealth Act No. 567 which outlines the statutory framework for the additional progressive taxes being waived.

Key Takeaways

• The Executive Order provides a significant tax relief to the Pampanga Sugar Mills for the 1948-1949 crop year due to prior financial losses.
• The action is taken to prevent undue hardship and is supported by recommendations from relevant commissions.
• The waiver is legally grounded in existing Philippine law, specifically Commonwealth Act No. 567.