Scribd
Upload
66 views2 pages

PD 2026

This presidential decree restores tax exemptions for rural banks that were previously withdrawn by Presidential Decree No. 1955 in order to help the rural banks survive the present economic crisis. It amends Section 1 of Presidential Decree No. 1955 to exempt rural banks with net assets less than 30 million pesos from taxes for five years, with the possibility of extension. The decree aims to ensure the survival of rural banks, which play a vital role in agricultural development but have been adversely affected by the previous removal of their tax privileges.

Uploaded by

Lv Avva
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
66 views2 pages

PD 2026

This presidential decree restores tax exemptions for rural banks that were previously withdrawn by Presidential Decree No. 1955 in order to help the rural banks survive the present economic crisis. It amends Section 1 of Presidential Decree No. 1955 to exempt rural banks with net assets less than 30 million pesos from taxes for five years, with the possibility of extension. The decree aims to ensure the survival of rural banks, which play a vital role in agricultural development but have been adversely affected by the previous removal of their tax privileges.

Uploaded by

Lv Avva
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

PRESIDENTIAL DECREE NO.

2026

RESTORING THE TAX PRIVILEGES GRANTED TO


RURAL BANKS, AND AMENDING FOR THE PURPOSE
SECTION 1 OF PRESIDENTIAL DECREE NO. 1955

WHEREAS, rural banks play a vital role in the agricultural development program
of the Government, as they serve the vast majority of the population in the rural
areas;

WHEREAS, rural banks had earlier been granted tax privileges to strengthen and
ensure their viability;

WHEREAS, however, Presidential Decree No. 1955 withdrew the duty and tax
privileges granted to private business enterprises and/or persons engaged in any
economic activity, including rural banks;

WHEREAS, the withdrawal of the tax exemption previously extended to rural


banks, has adversely affected the profitability and viability of more than ninety
percent (90%) of all rural banks operating throughout the country, especially in
view of the prevailing economic conditions;

WHEREAS, the restoration of the tax exemption of rural banks, will certainly help
them weather the present economic crisis;

WHEREAS, Parliamentary Bill No. 4531 introduced by MPs Emilio C. Macias II


and Ricardo D. Abiera, was pending in the Batasang Pambansa, but was not
passed before the Batasan’s adjournment, for lack of material time;

WHEREAS, considering the urgent representations of the rural bankers, and in


order to ensure their survival in the face of the grave emergency caused by
present economic difficulties, there is a need to act expeditiously to save the rural
banking system from total collapse;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,


by virtue of the powers vested upon me by the Constitution, do hereby decree:

SECTION 1. Section 1 of Presidential Decree No. 1955, is hereby amended by


adding a new paragraph thereto, as follows:

“(f) Rural banks whose net assets are less than Thirty Million Pesos
(₱30,000,000.00): Provided, That the tax privileges shall be extended only for a
period of five years from the date of the effectivity of this Decree, subject to
further extension as may be recommended by the Minister of Finance.”
SEC 2. All laws, orders, rules, regulations and issuances inconsistent with the
provisions of this Decree, are hereby repealed, amended, or modified
accordingly.

SEC 3. This Decree shall take effect immediately.

Done in the City of Manila, this 3rd day of February, in the year of Our Lord,
nineteen hundred and eighty-six.

(Sgd.) FERDINAND E. MARCOS

By the President:
(Sgd.) JUAN C. TUVERA
Presidential Executive Assistant

You might also like