Philippine Postal Corporation (1)

December 23, 2014 FIRB RESOLUTION NO. 010-14 SUBJECT MATTER : Philippine Postal Corporation (1) WHEREAS, the Philippine Postal Corporation (PhlPost) was created under Republic Act (RA) No. 7354 to operate a nationwide postal system with a network that extends or makes available provisions of mail services at affordable prices; WHEREAS, in view of this mandate, the PhilPost did not impose the value-added tax (VAT) on its domestic postal services in 2014, thus resulting to an estimated VAT liability of PhP322,953,987.00 thereon; WHEREAS, the imposition of VAT on its domestic postal services will increase the postage rates and make it hard for the PhilPost to survive the competition from private, multi-national and local couriers in the ever changing postal courier and logistics market; WHEREAS, the PhilPost does not have the financial capacity to assume the said VAT assessment; IECcaA WHEREAS, the grant of VAT subsidy will help improve the PhilPost's financial liquidity, solvency and capacity to meet its financial obligations; WHEREAS, the PhilPost is likewise being assessed for its Minimum Corporate Income Tax (MCIT) for the year 2013 in the amount of PhP36,886,782.00; WHEREAS, the PhilPost's projected ending cash balance before the requested tax subsidy is sufficient to accommodate its MCIT liability without impairing its operations; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy corresponding to its VAT liability on its domestic postal services for the year 2014, broken down as follows: VAT Liability Amount (in PhP) 1st Quarter of 2014 51,114,589.00 2nd Quarter of 2014 73,413,203.00 3rd Quarter of 2014 72,661,402.00 4th Quarter of 2014 125,764,794.00 Total 322,953,988.00 ============ Provided, that such availment shall be in accordance with the terms and conditions of Section 15 of RA No. 10633 or the 2014 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. TAaHIE (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) ADRIAN S. CRISTOBAL, JR. Undersecretary Department of Trade and Industry EMMANUEL F. ESGUERRA Deputy Director-General National Economic and Development Authority (SGD.) ESTELA V. SALES Deputy Commissioner Bureau of Internal Revenue (SGD.) ALEXIS F. MEDINA 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