Rationale for Tax Waiver
- Most sugar centrals are undergoing rehabilitation of war-damaged facilities including buildings and laborers' dwellings.
- Many sugar centrals are operating at a loss or with minimal profits.
- Imposing additional progressive taxes is deemed unduly oppressive and potentially confiscatory.
Covered Sugar Mills and Conditions for Waiver
Ormoc Sugar Company Inc.
- Must continue providing transportation allowances to planters as per the revised milling contract.
Bogo-Medellin Milling Co., Inc.
- Must continue improvements to increase mill and factory capacity.
- Must maintain the increased planter participation of 57.5%, which includes a 1.5% increase since 1952-1953.
- Enforcement of the escalator clause giving planters 60% of sugar and molasses produced from the 131st milling day onwards.
Asturias Sugar Central, Inc.
- Planters' participation must continue to be increased to 57.5%.
Central Azucarera del Norte and Hind Sugar Company
- 55% of the equivalent of the progressive tax amount must be paid to central planters as additional benefits.
Legal and Administrative Effect
- The waiver is effective for the specified crop year 1958-1959.
- The executive order highlights the government's support for rehabilitating key agricultural industries.
Signing and Authenticity
- Signed by President Carlos P. Garcia.
- Executed on August 21, 1959, in Manila.
- Attested by Executive Secretary Juan C. Pajo.