Armed Forces of the Philippines Commissary and Exchange Services (AFPCES)

July 9, 2019 FIRB RESOLUTION NO. 004-19 SUBJECT MATTER : Armed Forces of the Philippines Commissary and Exchange Services (AFPCES) 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, there is a need to ensure that the benefits of these services and facilities are extended only to their intended beneficiaries; WHEREAS, to ensure that said commissary services and post exchange facilities would achieve their objective, the Armed Forces of the Philippines Commissary and Exchange Service (AFPCES) has applied for tax subsidy in the amount of PhP449,404,737.00 to cover the taxes due on items to be purchased and sold to its intended beneficiaries for the year 2019; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application of the AFPCES for tax subsidy in the amount of FOUR HUNDRED FORTY NINE MILLION FOUR HUNDRED FOUR THOUSAND AND SEVEN HUNDRED THIRTY SEVEN PESOS (PhP449,404,737.00) only , representing the value-added tax (VAT) on general merchandise and excise tax on gasoline and diesel broken down as follows: Coverage Amount in PhP Ratio to Total (%) VAT on General Merchandise [to include pharmaceuticals, re-enlistment clothing allowance (RCA), tires, batteries and accessories (TBA), lubricants and other petroleum products (gasoline and diesel)] 420,676,737.00 93.61 Excise Tax 28,728,000.00 Gasoline 22,248,000.00 4.95 Diesel 6,480,000.00 1.44 Total 449,404,737.00 100.00 Provided , that the AFPCES shall: (1) submit to the FIRB the details of its system to ensure that commissary privileges are confined solely to their intended beneficiaries, including the following: (a) breakdown of customers by type/category; (b) quantity and purchase limits; and (c) identification requirements for customers; (2) submit to the FIRB the results of the annual audit of its operations by the Commission on Audit or a reliable independent auditor; and (3) mark on all items entitled to tax subsidy the words "Tax Subsidized by the Philippine Government, Not for Resale": Provided, further , that such availment shall be in accordance with the terms and conditions of Section 15 (c) of Republic Act (RA) No. 11260 or the 2019 General Appropriations Act (GAA), 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 (EO) No. 93. (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) CEFERINO S. RODOLFO Undersecretary Department of Trade and Industry (SGD.) ROSEMARIE G. EDILLON Deputy Director-General National Economic and Development Authority (SGD.) MARISSA O. CABREROS Deputy Commissioner of Internal Revenue Bureau of Internal Revenue (SGD.) REY LEONARDO B. GUERRERO Commissioner Bureau of Customs (SGD.) DONALDO M. BOO OIC-Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) ANTONETTE C. TIONKO Undersecretary of Finance Presiding Officer-FIRB