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

December 4, 2007 FIRB RESOLUTION NO. 012-07 SUBJECT MATTER : Philippine National Police Service Stores System (PNPSSS) (1) WHEREAS, commissary services and post exchange (PX) facilities are intended to augment 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 the 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 P21,310,408.00 to cover the taxes due on items purchased and sold by it to its intended beneficiaries; cHATSI WHEREAS, a similar provision of tax subsidy was already extended to the Armed Forces of the Philippines Commissary and Exchange Services; WHEREAS, there is likewise a need to ensure that the benefits of these services and facilities are extended also to qualified members of the police sector for reason of parity; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to grant tax subsidy to the PNPSSS in the amount of P21,310,408.00 only, representing taxes on items purchased and subsequently sold by its outlets to their intended beneficiaries, for the year 2007, in accordance with the following breakdown: Coverage Amount (In Pesos) Ratio to Total Value Added Tax (VAT) on: Merchandise 13,107,658.00 61.00 Office Supplies 160,714.00 0.65 Wines and Liquors 1,303,910.00 6.00 Cigarettes 56,661.00 0.28 Petroleum/Tires, Batteries 294,479.00 1.20 and Accessories Pharmacy 3,466,818.00 15.20 Textiles 595,822.00 2.60 Excise Tax on: Wines and Liquors 2,095,545.00 12.00 Cigarettes 228,800.00 1.07 Total 21,310,408.00 100.00 =========== ===== 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; (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"; and (4) take the necessary measures to improve the viability of its operations and submit the results of such measures to the FIRB on or before June 30, 2008: 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. 12-2006. SEIacA (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer FIRB Reference: Joint FIRB-Technical Committee Meeting dated December 4, 2007.