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RULING: YES, NPC is exempt from all forms of taxes including indirect tax.
One common theme in all the laws mentioned is that the NPC must be enabled to pay its indebtedness.
NPC must be and has to be exempt from all forms of taxes if this goal is to be achieved. By virtue of PD
No. 938, NPC’s capital stock was raised to P8B. It must be remembered that to pay for the government
share in its capital stock P.D. No.758 was issued mandating that P200M would be appropriated
annually to cover the said unpaid subscription of the Government in NPC’s authorized capital stock.
And significantly one of the sources of this annual appropriation of P200M is TAX MONEY. It does not
stand to reason then that former President Marcos would order P200M to be take partially or totally from
tax money to be used to pay the Government subscription in the NPC, on one hand, and then order the
NPC to pay all its indirect taxes, on the other.
The above conclusion that then President Marcos lumped up Secs. 13(b),(c) and (d) into the phrase
“ALL FORMS OF” is supported by the fact that he did not do the same for the tax exemption provision
for the foreign loans to be incurred. P.D. No. 938 did not amend the same and so the tax exemption
provision in Sec.8(b), R.A. No. 6395, as amended by P.D. No. 380, still stands. Since the subject matter
of this particular had to do only with loans and machinery imported, there was no other subject matter to
lump it up with, and so, the tax exemption stood as is—with the express mention of “direct and indirect”
tax exemptions. And this “direct and indirect” tax exemption privilege extended to “taxes, fees, imposts,
other charges… to be imposed” in the future—surely, an indication that the lawmakers wanted the NPC
to be exempt from ALL FORMS of taxes—direct and indirect.