M a n i l a



WHEREAS, for decades, respiratory diseases have been a priority concern, having been the leading cause of illness and death in the Philippines, comprising more than 45% of the total annual deaths from all causes, thus exacting a tremendous toll on human resources, which ailments are like to increase and degenerate into serious lung diseases on account of unabated pollution, industrialization and unchecked cigarette smoking in the country;

WHEREAS, the more common lung diseases are, to a great extent, preventable, and curable with early and adequate medical care, immunization and through prompt and intensive prevention and health education programs;

WHEREAS, there is an urgent need to consolidate and reinforce existing programs, strategies and efforts at preventing, treating and rehabilitating people affected by lung diseases, and to undertake research and training on the cure and prevention of lung diseases, through a Lung Center which will house and nurture the above and related activities and provide tertiary-level care for more difficult and problematical cases;

WHEREAS, to achieve this purpose the Government intends to provide material and financial support towards the establishment and maintenance of a Lung Center for the welfare and benefit of the Filipino people.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President and Prime Minister of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree:

Section 1. Creation of the Lung Center of the Philippines. There is hereby created a trust, under the name and style of Lung Center of the Philippines, which, subject to the provisions of this Decree, shall be administered, according to the Articles of Incorporation, By Laws and Objectives of the Lung Center of the Philippines, Inc., duly registered (reg. No. 85886) with the Securities and Exchange Commission of the Republic of the Philippines, by the Office of the President, in coordination with the Ministry of Human Settlements and the Ministry of Health.

Section 2. Tax Exemptions and Privileges. Being a non-profit, non-stock corporation organized primarily to help combat the high incidence of lung and pulmonary diseases in the Philippines, all donations, contributions, endowments and equipment and supplies to be imported by authorized entities or persons and by the Board of Trustees of the Lung Center of the Philippines, Inc., for the actual use and benefit of the Lung Center, shall be exempt from income and gift taxes, the same further deductible in full for the purpose of determining the maximum deductible amount under Section 30, paragraph (h), of the National Internal Revenue Code, as amended.

The Lung Center of the Philippines shall be exempt from the payment of taxes, charges and fees imposed by the Government or any political subdivision or instrumentality thereof with respect to equipment purchases made, or for, the Lung Center.

Section 3. Assistance From Government Offices. The Lung Center of the Philippines, Inc., may call upon any Ministry, Bureaus, Office, agency or instrumentality of the government, including government-owned or controlled corporations, particularly the Philippine Charity Sweepstakes Office, for such assistance it may need in the pursuit of its purposes and objectives.

Section 4. Government Subsidy and Contributions. The amount of Twenty-Five Million Pesos (P25,000,000) is hereby appropriated as contribution of the National Government for the initial operations and maintenance of the Lung Center of the Philippines in the year 1981. Thereafter, the amount necessary to ensure the continued operations and maintenance of the Lung Center of the Philippines shall be duly provided for, appropriated and released from the National Budget, subject to the approval of the President and Prime Minister of the Republic of the Philippines. The funds therefrom shall be administered by the Board of the Lung Center of the Philippines, Inc., in behalf of the Lung Center.

Section 5. Auditing. The books of accounts of the Lung Center of the Philippines shall be under the charge and safekeeping of the Treasurer of the Lung Center of the Philippines, Inc., and of its CHAIRMAN but such books of account shall be subject to periodic by the Chairman of the Commission on Audit, or by his duly authorized representative.

Section 6. Annual Report. The Lung Center of the Philippines shall render to the President of the Philippines, the Minister of Human Settlements and the Minister of Health as annual report of its activities, accomplished and recommendations.

Section 7. Effect of Dissolution of the Center. If for any reason, the Lung Center of the Philippines is dissolved, its assets and properties remaining at the time of dissolution, shall revert to the Philippine Government for disposition in accordance with law.

Section 8. Effectivity. This Decree shall take effect immediately.

Done in Metro Manila, this 16th day of January, in the year of Our Lord, nineteen hundred and eighty-one.

The Lawphil Project - Arellano Law Foundation