Procurement Service — PX Marts (PX Marts) (1)

December 4, 2007 FIRB RESOLUTION NO. 018-07 SUBJECT MATTER : Procurement Service PX Marts (PX Marts) (1) WHEREAS, commissary services and post exchange (PX) facilities are intended to augment benefits ( e.g., salaries and allowances) of government personnel to enable them to cope with their basic needs. ADcHES WHEREAS, a similar provision of tax subsidy was already extended to the Armed Forces of the Philippines Commissary and Exchange Services (AFPCES) and the Philippine National Police Service Stores System (PNPSSS); WHEREAS, there is also a need to ensure that the benefits of these services and facilities are extended to other government personnel for reason of parity; TcSHaD WHEREAS, to ensure that said commissary services and post exchange facilities would be able to achieve their objective, the Procurement Service-PX Marts (PX Marts) has applied for tax subsidy in the amount of P269,709.86 to cover the VAT due on items purchased and sold by it to its intended beneficiaries; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to grant tax subsidy to the PX Marts in the amount of P269,709.86 only, representing the VAT on items purchased and subsequently sold by it to its intended beneficiaries, for the year 2007, in accordance with the following breakdown: Amount of Purchase VAT Supplier's Name Orders A. TUNG CHINGCO MFG. CORP. P49,350.00 P5,287.50 BASIC GOODS MARKETING, INC. 24,046.50 2,576.41 FOODSOURCE ENTERPRISE, INC. 52,495.25 5,624.49 FOODZONE, INC. 1,571,494.70 168,374.44 MADE DISTRIBUTION ENTERPRISE 296,928.54 31,813.77 MARINA SALES, INC. 7,379.20 790.63 MCGS MULTI-CLASS MARKETING 161,905.65 17,347.03 SAN MIGUEL CORPORATION 15,502.13 1,660.94 VADUZ MARKETING, INC. 273,522.03 29,305.93 ZEST-O CORPORATION 64,667.96 6,928.71 TOTAL P2,517,291.96 P269,709.86 =========== ========= Provided, however, that the PX Marts shall: (1) strictly implement a system that will ensure that commissary privileges are confined solely to their intended beneficiaries; (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 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. HScDIC (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer FIRB Reference: Joint FIRB-Technical Committee Meeting dated December 4, 2007.