"SECTION 121. Tax on Banks and Non-bank Financial Intermediaries. - There shall be collected a tax on gross receipts derived from sources within the Philippines by all banks and non-bank financial intermediaries in accordance with the following schedule:

"(a) On interest, commissions and discounts from lending activities as well as income from financial leasing, on the basis of remaining maturities of instruments from which such receipts are derived:

"Short-term maturity (not in excess of two (2) years) 5%

"Medium-term maturity (over two (2) years

but not exceeding four (4) years) 3%

"Long-term maturity -

"(1) Over four (4) years

but not exceeding seven (7) years 1%

"(2) Over seven (7) years 0%

"(b) On dividends 0%

"(c) On royalties, rentals of property, real or personal,

profits from exchange and all other items treated

as gross income under Section 32 of this Code 5%

"Provided, however, That in case the maturity period referred to in paragraph (a) is shortened thru pretermination, then the maturity period shall be reckoned to end as of the date of pretermination for purposes of classifying the transaction as short, medium or long-term and the correct rate of tax shall be applied accordingly.

"Nothing in this Code shall preclude the Commissioner from imposing the same tax herein provided on persons performing similar banking activities.