Armed Forces of the Philippines Commissary and Exchange Service (3)

December 8, 2011 FIRB RESOLUTION NO. 015-11 SUBJECT MATTER : Armed Forces of the Philippines Commissary and Exchange Service (3) 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 objectives, the Armed Forces of the Philippines Commissary and Exchange Service (AFPCES) has applied for an additional tax subsidy in the amount of P66,020,319.71 to cover the taxes due on items it has purchased and sold to its intended beneficiaries, for the year 2011; WHEREAS, there is also a need to ensure that the benefits of these services and facilities are extended only to their intended beneficiaries; WHEREAS, the AFPCES was initially granted tax subsidy in the amount of P227,403,340.79 through FIRB Resolution Nos. 3-11 and 8-11; WHEREAS, there is a need to ensure a more effective tax subsidy allocation and utilization without prejudice to other government owned- and/or-controlled corporations (GOCCs) applying for tax subsidy; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application of the AFPCES for additional tax subsidy in the amount of SIXTY SIX MILLION TWENTY THOUSAND THREE HUNDRED NINETEEN AND 71/100 PESOS (P66,020,319.71) only, representing the Value-Added Tax (VAT) on general merchandise and excise tax on petroleum products purchased and subsequently sold by its outlets to their intended beneficiaries only, broken down as follows: Ratio to Coverage Amount in Pesos Total (%) Value-Added Tax (VAT) 62,692,642.48 94.96 General Merchandise 50,542,050.53 80.62 Medicine and Medical Supplies 7,335,555.73 11.70 Diesel/TBA/Lubricants/Gasoline 4,815,036.22 7.68 Excise Tax on Gasoline 3,327,677.23 5.04 Total 66,020,319.71 100.00 =========== ===== 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, furthermore, that such availment shall be in accordance with the terms and conditions of Section 13 of Republic Act (RA) No. 10147 or the 2011 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. TaHDAS (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer-FIRB