Section 14Sec./Art. 14

Exemption from Taxes, Customs and Tariff Duties.- The importation of equipment, machineries, spare parts, accessories, and other materials, including supplies and services used directly in the operations of the Postal System, not obtainable locally on favorable terms, shall be exempt from all direct and indirect taxes, customs duties, fees, imports, tariff duties, compensating taxes, wharfage fees and other charges and restrictions, the provisions of existing laws to the contrary notwithstanding.

All obligations entered into by the Corporation and any income derived therefrom, including those contracted with private international banking and financial institutions, shall be exempt from all taxes on both principal and interest.

The Corporation is also exempt from the payment of capital gains tax, local government imposts and fees after December 31, 1997:Provided,That it may offset the full value of capital investments not otherwise funded by the National Government against any income tax due for the same period.