Section 5Sec./Art. 5

Section 9 of Republic Act. No. 7294 is hereby amended to read as follows:

"Sec. 9. Tax Provisions. - The grantee, its successors or assignees, shall be liable to pay the same taxes on their real estate, buildings and personal property, exclusive of this franchise, as other persons or corporations which are now or hereafter may be required by law to pay, except radio telecommunications and electronic communications equipment, machinery and spare parts needed in connection with the business of the grantee which shall be exempt from customs duties, tariffs and other taxes, as well as those declared exempt in this section.

In addition thereto, the grantee, its successors or assignees, shall pay a value-added tax om all gross receipts of the business transacted under this franchise by the grantee, its successors or assignees, in the Philippines, in lieu of any and all taxes of any kind, nature or description levied, established or collected by an authority whatsoever including, but notlimited to, city, municipal, provincial or national, from which the grantee is hereby expressly exempted effective from the date of the effectivity of this Act: Provided, That the grantee, its successors or assignees, shall continue to be liable for income taxes payable under Title II of the National Internal Revenue Code pursuant to Section 2 of Executive Order No. 72 unless the latter enactment is amended or repealed, in which case the amendment or repealshall be applicable thereto.

"The grantee shall file the return with and pay the tax due thereonto the Commissioner of Internal Revenue or his duly authorized representative in accordance with the NationalInternal Revenue Code and the return shall be subject to audit by the Bureau of Internal Revenue."