AFP Commissary and Exchange Service

March 19, 2004 FIRB RESOLUTION NO. 003-04 WHEREAS, commissary services and post exchange facilities are intended to augment the benefits of military personnel in recognition of their work in national security and defense; WHEREAS, such services and facilities are recognized as integral adjuncts of the military sector on a global basis; WHEREAS, to ensure that said commissary services and post exchange facilities are availed of by the officers and men including their families and dependents of the Philippine Armed Forces, the Armed Forces of the Philippines Commissary and Exchange Service (AFPCES) has applied for tax subsidy to cover the taxes due on items purchased and sold by it to its intended beneficiaries in the amount of P195,133,300; WHEREAS, there is also a need to ensure that the benefits of these services and facilities are extended only to their intended beneficiaries; NOW THEREFORE BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for subsidy availment of the AFPCES in the amount of P156,106,640 only, representing the taxes on items purchased and subsequently sold by its outlets to their intended beneficiaries only, for the year 2004, in accordance with the following breakdown: Coverage Amount (Pesos) Ratio to total 1. VAT on purchases 122,157.040 78% 2. Excise tax on petroleum products 11,182,400 7% 3. Excise tax on alcohol and beverages 7,327,200 5% 4. Excise tax on cigarettes 6,400,000 4% 5. VAT (output) 9,040,000 6% Total 156,106,640 100.00% Provided, however , that this approval is without prejudice to further application for tax subsidy by the AFPCES: Provided, further, that the AFPCES shall: (1) submit to the FIRB the progress reports on the results of its programs to turn around its operations; (2) formulate a system by which commissary privileges would be confined solely to intended beneficiaries and monitor the amount of purchases made by said beneficiaries to conform with the prescribed limits; (3) submit itself to an annual audit by the Commission on Audit; (4) cause to be marked on all items entitled to tax subsidy herein granted the words "Tax Subsidized by the FIRB"; (5) submit the prices of commodities sold by its outlets; and (6) submit a breakdown of its sales by outlet: Provided furthermore, that such availment shall be in accordance with the terms and conditions of Section 13 of the 2003 General Appropriations Act, as reenacted, subject to the availability of funds therefor, pursuant to the terms and conditions of the Rules and Regulations to Implement the Subsidy Provision Under Executive Order No. 93 and Bureau of Internal Revenue Regulations No. 31-2003. TcEaAS (SGD.) GIL P. MONTALBO (SGD.) GREGORY L. DOMINGO Director Undersecretary Department of Budget and Management Department of Trade and Industry (SGD.) MARGARITA R. SONGCO (SGD.) JOSE MARIO C. BUAG Assistant Director-General Deputy Director National Economic and Development Bureau of Internal Revenue Authority (SGD.) GIL A. VALERA (SGD.) LINA D. ISORENA Deputy Commissioner Executive Director Bureau of Customs Head, FIRB Secretariat National Tax Research Center (SGD.) NIEVES L. OSORIO Undersecretary of Finance Presiding Officer FIRB