FIRB Resolution No. 002-87

1987 FIRB RESOLUTION NO. 002-87 WHEREAS, Executive Order No. 93 lays down as a policy of the Government that assistance to Government and private entities may be made more transparent and better provided where necessary by subsidy and budgetary support rather than tax and duty incentives; WHEREAS, under Section 23 of Presidential Decree No. 1177, otherwise known as the Budget Reform Decree of 1977, it is clearly stated that "all units of government, including government-owned or controlled corporations, shall pay income taxes, custom duties and other taxes and fees as are imposed under revenue laws; provided, that organizations otherwise exempted by law from the payment of such taxes/duties may ask for a subsidy from the General Fund in the exact amount of taxes/duties due: provided, further, that a procedure shall be established by the Secretary of Finance and the Commissioner of the Budget, whereby such subsidies shall automatically be considered as both revenue and expenditure of the General Fund;" WHEREAS, the current year appropriations of some units of government may not have provisions for the payment of taxes/duties due from them, hence the provision of the deferred payment of taxes and duties; WHEREAS, this deferred payment of taxes/duties tends towards the policy laid down by EO 93 on institutionalizing a more effective system of assistance; WHEREAS, this deferred payment of taxes/duties makes possible the proper accounting of tax revenue and tax expenditures on the part of the Government. NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, That the system of deferred payment of taxes/duties under the terms and conditions of PD 1177 is restored effective March 10, 1987. (SGD.) ALFREDO PIO DE RODA, JR. Acting Secretary of Finance Chairman FIRB