Philippine National Police Service Stores System (PNPSSS) (1)

December 12, 2006 FIRB RESOLUTION NO. 011-06 SUBJECT : Philippine National Police Service Stores System (PNPSSS) (1) WHEREAS, commissary services and post exchange (PX) facilities are intended to augment the benefits (e.g., salaries and allowances) of police personnel in recognition of their work in the area of peace and order. WHEREAS, such services and facilities are recognized as integral adjuncts of the police sector on a global basis; WHEREAS, to ensure that said commissary services and post exchange facilities would be able to achieve their objective, the Philippine National Police Service Stores System (PNPSSS) has applied for tax subsidy in the amount of P17,979,248.00 to cover the taxes due on items it has purchased and sold to its intended beneficiaries; WHEREAS, a similar provision of tax subsidy is also extended to the Armed Forces of the Philippines Commissary and Exchange Services. WHEREAS, there is also a need to ensure that the benefits of these services and facilities are extended only to qualified members of the police sector for reason of parity; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy availment of the PNPSSS in the amount of P17,979,248.00 only , representing the taxes on items purchased and subsequently sold by its outlets to their intended beneficiaries, for the year 2006, in accordance with the following breakdown: Coverage Amount (In Ratio of Total Pesos) Value Added Tax (VAT) on: Merchandise 13,347,576.00 74.24 Petroleum 1,298,021.00 7.22 Pharmacy 2,827,364.00 15.72 Textiles 506,288.00 2.82 Total 17,979,248.00 100.00 ========== ===== Provided, however , that the PNPSSS shall: (1) strictly implement the system to ensure that commissary privileges are confined solely to their intended beneficiaries and the amount of purchases made by said beneficiaries conforms with prescribed limits; (2) submit itself to an annual audit 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 2005 General Appropriations Act, as reenacted, 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. 12-2006. TAECaD (SGD.) MARGARITO B. TEVES Secretary of Finance Chairman-FIRB Reference: Joint FIRB-Technical Committee Meeting dated December 12, 2006