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

October 13, 2020 FIRB RESOLUTION NO. 007-20 SUBJECT MATTER : Armed Forces of the Philippines Commissary and Exchange Service (AFPCES) 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 its intended beneficiaries; WHEREAS, to ensure that said commissary services and post exchange facilities would achieve its objective, the Armed Forces of the Philippines Commissary and Exchange Service (AFPCES) has applied for tax subsidy in the amount of P449,404,737.00 to cover for the value-added tax (VAT) and excise tax due on items purchased and sold to its intended beneficiaries for the year 2019; 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 TWENTY-ONE MILLION FIVE HUNDRED NINETY-EIGHT THOUSAND FIVE HUNDRED SEVEN PESOS AND 74/100 (P321,598,507.74) only, representing the VAT on general merchandise and excise tax on gasoline and diesel broken down as follows: AHCETa Coverage Amount in Pesos Ratio to Total (%) Value-added tax (VAT) on general merchandise [to include pharmaceuticals, re-enlistment clothing allowance (RCA), tires, batteries and accessories (TBA), lubricants 289,726,507.74 90.09 Excise tax on petroleum products 31,872,000.00 Gasoline 22,224,000.00 6.91 Diesel 9,648,000.00 3.00 Total 321,598,507.74 100.00 Provided , that the AFPCES shall: (1) submit to the FIRB the details of its system to ensure that commissary privileges are confined solely to 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) 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 (c) of Republic Act (RA) No. 11465 or the 2020 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. This tax subsidy shall only pertain to 2020 sales in accordance w/existing rules (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) CEFERINO S. RODOLFO Undersecretary Department of Trade and Industry (SGD.) ROSEMARIE G. EDILLON Deputy Director-General National Economic and Development Authority (SGD.) MARISSA O. CABREROS Deputy Commissioner of Internal Revenue Bureau of Internal Revenue (SGD.) REY LEONARDO B. GUERRERO Commissioner Bureau of Customs (SGD.) MARLENE LUCERO-CALUBAG OIC-Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) ANTONETTE C. TIONKO Undersecretary of Finance Presiding Officer-FIRB