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

August 14, 2009 FIRB RESOLUTION NO. 010-09 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; 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 P429,006,649.53 to cover the taxes due on items it has purchased and sold to its intended beneficiaries, for the year 2009; ECTIcS 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 FOUR HUNDRED TWENTY NINE MILLION SIX THOUSAND SIX HUNDRED FORTY NINE AND 53/100 PESOS (P429,006,649.53) only, representing the taxes on items purchased and subsequently sold by its outlets to their intended beneficiaries only, for 2009, in accordance with the following breakdown: Coverage Amount in Pesos Ratio to Total Value Added Tax (VAT) 357,540,420.67 83.34 VAT on Merchandise 357,540,420.67 83.34 Excise Tax 71,466,228.86 16.66 Gasoline 13,091,760.00 3.05 Alcohol (Beer, Wines and Liquor) 58,374,468.86 13.61 Total 429,006,649.53 100.00 =========== ===== 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 13 of the 2009 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. (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer FIRB Reference: Joint FIRB-Technical Committee Meeting dated August 14, 2009.