Armed Forces of the Philippines Commissary and Exchange Service (1)

August 7, 2008 FIRB RESOLUTION NO. 006-08 SUBJECT MATTER : Armed Forces of the Philippines Commissary and Exchange Service (1) 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; DIECTc 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 achieve their objective, the Armed Forces of the Philippines Commissary and Exchange Service (AFPCES) has applied for tax subsidy in the amount of P376,208,962.53 to cover the taxes due on items it has purchased and sold to its intended beneficiaries, for the year 2008; ACIEaH 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 grant tax subsidy to the AFPCES in the amount of THREE HUNDRED SEVENTY SIX MILLION TWO HUNDRED EIGHT THOUSAND NINE HUNDRED SIXTY TWO AND 53/100 PESOS (P376,208,962.53) only, representing the taxes on items purchased and subsequently sold by its outlets to their intended beneficiaries only, for 2008, in accordance with the following breakdown: Coverage Amount Ratio to in Pesos Total Value Added Tax (VAT) 301,099,973.25 80.04 VAT on Merchandise 301,099,973.25 80.04 Excise Tax 75,108,989.28 19.96 Gasoline 17,843,760.00 4.74 Alcohol (Beer, Wines and Liquor) 57,265,229.28 15.22 Total 376,208,962.53 100.00 =========== ===== 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 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) cause to be marked on all items entitled to tax subsidy herein granted 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 14 of the 2008 General Appropriations Act, 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. aDICET (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer FIRB Reference: Joint FIRB-Technical Committee Meeting dated August 7, 2008.