Tax and Duty Privileges Granted NAFPCES

December 12, 1989 BIR RULING NO. 251-89 103 (u) 000-00 251-89 Gentlemen : This refers to your letter dated January 30, 1989 inquiring from this Office whether your company's sales to the Commissary of the Armed Forces of the Philippines are exempt from the VAT in connection with Executive Order No. 93 which took effect last March 10, 1987. cdtech In reply, please be informed that Executive Order No. 93 withdrew, subject to certain exceptions, the tax and duty privileges granted to government and private entities. However, pursuant to FIRB Resolution No. 5-87 dated April 13, 1987, the tax and duty privileges granted to the Armed Forces of the Philippines Commissary and Exchange Services (now NAFPCES) under the terms and conditions of Executive Order No. 76 was temporarily restored effective March 10, 1987 pending the release of the budgetary appropriation in the amount of Fifty Million Pesos (P50,000,000.00) intended to the beneficiaries of the NAFPCES payable to the Department of National Defense. Accordingly, it appearing that the said budgetary appropriation has not yet been released as of this date, sales to NAFPCES are still exempt from the 10% value-added tax pursuant to Section 103(u) of the Tax Code, as amended by Executive Order No. 273. cd Very truly yours, (SGD.) JOSE U. ONG Commissioner