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

June 21, 2013 FIRB RESOLUTION NO. 006-13 SUBJECT MATTER : Armed Forces of the Philippines Commissary and Exchange Service (AFPCES)(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; DTcACa 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 PhP395,079,625.56 to cover the taxes due on items it has purchased and sold to its intended beneficiaries, for the year 2013; 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 NINETY FIVE MILLION SEVENTY NINE THOUSAND SIX HUNDRED TWENTY FIVE PESOS AND 56/100 (PhP395,079,625.56) only, representing the VAT on general merchandise and petroleum products and excise tax on gasoline, broken down as follows: Ratio to Coverage Amount in PhP Total (%) Value-Added Tax (VAT) 378,271,225.56 95.75 General Merchandise (including pharmaceutical and medical supplies) 351,313,951.66 88.92 Gasoline 18,766,268.10 4.75 Diesel 7,173,873.77 1.82 Tires, Batteries and Accessories (TBA)/Lubricants 1,017,132.03 0.26 Excise Tax on Gasoline 16,808,400.00 4.25 Total 395,079,625.56 100.00 ============ ===== 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 13 of Republic Act (RA) No. 10352 or the 2013 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 and Bureau of Internal Revenue (BIR) Regulations No. 31-2003. HTCIcE (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) ADRIAN S. CRISTOBAL, JR. Undersecretary Department of Trade and Industry (SGD.) EMMANUEL F. ESGUERRA Deputy Director-General National Economic and Development Authority (SGD.) ESTELA V. SALES Deputy Commissioner Bureau of Internal Revenue (SGD.) RAMON G. CUYCO Director Bureau of Customs (SGD.) TRINIDAD A. RODRIGUEZ Officer-in-Charge National Tax Research Center Head, FIRB Secretariat (SGD.) JEREMIAS N. PAUL, JR. Undersecretary Department of Finance Presiding Officer-FIRB