AFP Commissary and Exchange Service

August 8, 2006 FIRB RESOLUTION NO. 006-06 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 would be able to achieve their objective, the Armed Forces of the Philippines Commissary and Exchange Service (AFPCES) has applied for tax subsidy in the amount of P214,933,362.00 to cover the taxes due on items it has purchased and sold to its intended beneficiaries; 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 P214,933,362.00 only , representing the taxes on items purchased and subsequently sold by its outlets to their intended beneficiaries only, for the year 2006, in accordance with the following breakdown: Coverage Amount Ratio to Total In Pesos Value Added Tax (VAT) VAT on Projected Purchases (Merchandise, 121,158,557.00 56.37 Medicines and Other Petroleum, Oil and Lubricant products) 93,774,805.00 43.63 Excise Tax 44,422,200.00 Gasoline 5,007,360.00 47.37 Diesel 44,345,245.00 5.34 Alcohol (Beer, Wines and Liquor) 47.29 Total 214,933,362.00 100.00 Provided, however , that the AFPCES shall: (1) submit to the FIRB the details of its system to ensure that commissary privileges are confined solely to its 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) cause to be marked on all items entitled to tax subsidy herein granted the words "Tax Subsidized by the Philippine Government": Provided further , that such availment shall be in accordance with the terms and conditions of Section 14 of the 2005 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. cHSTEA (SGD.) GIL P. MONTALBO Director Department of Budget and Management (SGD.) ELMER C. HERNANDEZ Undersecretary Department of Trade and Industry (SGD.) MARGARITA R. SONGCO Deputy Director-General National Economic and Development Authority (SGD.) JAMES H. ROLDAN Assistant Commissioner Bureau of Internal Revenue (SGD.) RAMON G. CUYCO Director Bureau of Customs (SGD.) LINA D. ISORENA Executive Director Head, FIRB Secretariat National Tax Research Center (SGD.) GIL S. BELTRAN Undersecretary Presiding Officer - FIRB