Armed Forces of the Philippines Commissary and Exchange Service

August 15, 2014 FIRB RESOLUTION NO. 005-14 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 PhP358,031,279.00 to cover the taxes due on items to be purchased and sold to its intended beneficiaries, for the year 2014; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application of the AFPCES for tax subsidy in the amount of THREE HUNDRED FIFTY EIGHT MILLION THIRTY ONE THOUSAND TWO HUNDRED SEVENTY NINE PESOS (PhP358,031,279.00) only, representing the Value-Added Tax (VAT) on general merchandise and petroleum products and excise tax on gasoline except taxes on alcohol and tobacco products, broken down as follows: Coverage Amount in PhP Ratio to Total (%) Value-Added Tax (VAT) 343,832,879.00 96.03 General Merchandise (including 318,214,761.70 88.88 pharmaceutical and medical supplies) Gasoline 18,023,644.80 5.03 Diesel 6,529,112.23 1.82 Tires, Batteries and Accessories 1,065,360.27 0.30 (TBA)/Lubricants Excise Tax on Gasoline 14,198,400.00 3.97 Total 358,031,279.00 100.00 ========== ==== 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 of Republic Act (RA) No. 10633 or the 2014 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. HScaCT (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) ADRIAN S. CRISTOBAL, JR. Undersecretary Department of Trade and Industry EMMANUEL F. ESGUERRA Deputy Director-General National Economic and Development Authority (SGD.) ESTELA V. SALES Deputy Commissioner Bureau of Internal Revenue (SGD.) ALEXIS F. MEDINA Director Bureau of Customs (SGD.) TRINIDAD A. RODRIGUEZ OIC-Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) JEREMIAS N. PAUL, JR. Undersecretary of Domestic Finance Group Presiding Officer-FIRB