Whereas Clauses. WHEREAS,

under existing law, educational institutions are not placed at par for taxation purposes as some are subject to tax and others are not subject to tax;

WHEREAS,

in line with the provisions of the New Constitution removing the exemptions of educational institutions from real estate taxes, their exemption from income tax should likewise be removed, as provided under existing laws;

WHEREAS,

to achieve simplicity in implementation, there should be imposed a fixed rate of tax on all income of educational institutions;

WHEREAS,

in order to achieve improvements in educational facilities and expansion of educational activities, the re-investment of profits or surplus necessary therefrom should be encouraged;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines and pursuant to PROCLAMATION NO. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, as amended, do hereby order and decree that