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

July 16, 2007 FIRB RESOLUTION NO. 007-07 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; DTEScI 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 AFPCES has applied for tax subsidy in the amount of P270,263,631.00 to cover the taxes due on items it has purchased and sold to its intended beneficiaries, for the year 2007; TDCcAE 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 of the AFPCES in the amount of P270,263,631.00 only, representing the taxes on items purchased and subsequently sold by its outlets to their intended beneficiaries only, for 2007, in accordance with the following breakdown: ESTCDA Amount Ratio Coverage in Pesos to Total Value Added Tax (VAT) VAT on Merchandise and other Petroleum, Oil and Lubricant Products 175,359,105.00 64.88 Excise Tax 94,904,526.00 35.12 Gasoline 44,422,220.00 Alcohol (Beer, Wines and Liquor) 50,482,306.00 Total 270,263,631.00 100.00 =========== ===== 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 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 2007 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. AIHECa (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer FIRB Reference: FIRB Technical Committee Meeting dated June 27, 2007 FIRB Meeting dated July 16, 2007