Section 11Sec./Art. 11

Tax Provision. -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 thereafter may be required by law to pay, except radio, telecommunications, and electric 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 on 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 not limited 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 successor 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Internal Revenue Code pursuant to Section 2 of Executive Order No. 72, unless the latter enactment is amended or repealed, in which case. amendment or repeal shall be applicable thereto.