AN ACT AMENDING
THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED,
AND FOR OTHER
292. Separability Clause. -
If any clause, sentence, paragraph or part of this Code shall be adjudged
by any Court of competent jurisdiction to be invalid, such judgment shall
not affect, impair or invalidate the remainder of said Code, but shall
be confined in its operation to the clause, sentence, paragraph or part
thereof directly involved in the controversy.
SEC. 4. The Secretary
of Finance shall, upon recommendation of the Commissioner of Internal Revenue,
promulgate and publish the necessary rules and regulations for the effective
implementation of this Act.
SEC. 5. Transitory
Provisions. - Deferment of the Effectivity of the Imposition of
VAT on Certain Services. - The effectivity of the imposition of the value-added
tax on services as prescribed in Section 17(a) and (b) of Republic Act
No. 7616, as amended by Republic Act. 8241, is hereby further deferred
until December 31, 1999, unless Congress deems otherwise: Provided,
That the said services shall continue to pay the applicable tax prescribed
under the present provisions of the National Internal Revenue Code, as
SEC. 6. Separability
If any provision of this Act is subsequently declared unconstitutional,
the validity of the remaining provisions hereof shall remain in full force
SEC. 7. Repealing
(A) The provision of
Section 17 of Republic Act No. 7906, otherwise known as the "Thrift
Banks Act of 1995" shall continue to be in force and effect only until
December 31, 1999.
Effective January 1,
2000, all thrift banks, whether in operation as of that date or thereafter,
shall no longer enjoy tax exemption as provided under Section 17 of R.
A. No. 7906, thereby subjecting all thrift banks to taxes, fees and charges
in the same manner and at the same rate as banks and other financial intermediaries.
(B) The provisions
of the National Internal Revenue Code, as amended, and all other laws,
including charters of government-owned or controlled corporations, decrees,
orders, or regulations or parts thereof, that are inconsistent with this
Act are hereby repealed or amended accordingly.
SEC. 8. Effectivity.
This Act shall take effect on January 1, 1998.