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Republic Act
Approved July 26, 2003

Republic Act No. 9215

An act amending republic act no. 8339, entitled "an act granting air philippines corporation (air philippines) a franchise to establish, operate and maintain domestic and international air transport services"

REPUBLIC ACT NO. 9215 – AN ACT AMENDING REPUBLIC ACT NO. 8339, ENTITLED "AN ACT GRANTING AIR PHILIPPINES CORPORATION (AIR PHILIPPINES) A FRANCHISE TO ESTABLISH, OPERATE AND MAINTAIN DOMESTIC AND INTERNATIONAL AIR TRANSPORT SERVICES"

In plain language

This Act amends Republic Act No. 8339 by instituting a 5% franchise tax on gross revenues from transport operations, mandating a 30% ownership dispersion within ten years, affirming the franchise is not exclusive, allowing repeal or amendment by Congress, and establishing effectivity 15 days after publication.

  • Impose a 5% franchise tax on gross revenues from transport operations.
  • Require 30% ownership dispersion within ten years.
  • Affirm franchise is non-exclusive.
  • Allow repeal or amendment by Congress.
  • Establish effectivity 15 days after publication.
air transportation
franchise
tax
public utilities
legislation

Twelfth Congress Second Regular Session

Begun held in Metro Manila on Monday, the twenty-second day of July, two thousand two

REPUBLIC ACT NO. 9215 July 26, 2003

AN ACT AMENDING REPUBLIC ACT NO. 8339, ENTITLED "AN ACT GRANTING AIR PHILIPPINES CORPORATION (AIR PHILIPPINES) A FRANCHISE TO ESTABLISH, OPERATE AND MAINTAIN DOMESTIC AND INTERNATIONAL AIR TRANSPORT SERVICES"

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1

Section 11 of Republic Act No. 8339 is hereby amended to read as follows:

"Section 11. Tax Provisions. - The grantee, its successors or assigns, shall pay to the Philippine Government during the life of its franchise a franchise tax of five percent (5%) of the gross revenues derived by the grantee from its transport operations. In the event that any competing individual, partnership or corporation receives or enjoys tax privileges and other favorable terms which tend to place the herein grantee at any disadvantage, then such provisions shall be deemed ipso factopart hereof and shall operate equally in favor of the grantee. The grantee shall, however, be subject to income tax levied under Title II of the National Internal Revenue Code, as amended, and tax on its real property under existing laws on revenues earned from activities other than air transportation." Section 2. Section 14 of Republic Act No. 8339 is hereby amended to read as follows:

"Section 14. Dispersal of Ownership. - In accordance with constitutional provisions to encourage public participation in public utilities, the grantee shall offer at least thirty percentum (30%) of its outstanding capital stock or a higher percentage that may hereafter be provided by law in any securities exchange in the Philippines within ten (10) years from the commencement of its operations. Non-compliance therewith shall render the franchise ipso facto revoked. Section 3. Section 15 of Republic Act No. 8339 is hereby amended to read as follows:

"Section 15. Non-exclusivity Clause. - This franchise shall not be interpreted to mean as an exclusive grant of the privileges herein provided for. Section 4. Section 17 of Republic Act No. 8339 is hereby amended to read as follows:

"Section 17. Repealability Clause. - This franchise shall be subject to amendment, alteration or repeal by the Congress of the Philippines when the public interest so requires. Section 5. Separability Clause. - If any of the sections or provisions of this Act is held or declared unconstitutional or invalid by a competent court in a final judgment, all the other sections or provisions not affected thereby shall remain valid.

Section 6. Effectivity

- This Act shall take effect fifteen (15) days from the date of its publication, upon the initiative of the grantee, in at least two (2) newspapers of general circulation in the Philippines.

Approved, | FRANKLIN M. DRILON President of the Senate | JOSE DE VENECIA JR. Speaker of the House of Representatives |

For information and research only, and not legal advice. This text may not reflect later amendments. For certified copies, refer to the Official Gazette or the issuing agency.