Philippine Postal Corporation (1)

December 9, 2008 FIRB RESOLUTION NO. 019-08 SUBJECT MATTER : Philippine Postal Corporation (1) WHEREAS, the Philippine Postal Corporation (PhilPost) was created under RA No. 7354 to operate a nationwide postal system with a network that extends or makes available provisions of mail services at affordable prices; cCaDSA WHEREAS, in view of this mandate, the PhilPost did not impose the value-added tax (VAT) on its domestic postal services, thus resulting in its not being able to pay the BIR's VAT liability of P227,998,264.00 thereon; WHEREAS, the PhilPost is likewise being assessed the Minimum Corporate Income Tax (MCIT) for the years 2006 and 2007 in the amount P16,134,631.48; WHEREAS, the PhilPost does not have the financial capacity to assume the said VAT and MCIT assessments; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the PhilPost in the amount of TWO HUNDRED FORTY THREE MILLION FIVE HUNDRED NINETY NINE THOUSAND TWENTY FOUR AND 48/100 PESOS (P243,599,024.48) only broken down as follows: Type of Tax/Taxable Year Amount (In Pesos) Value Added Tax (VAT) 2008 227,464,393.00 Minimum Corporate Income Tax (MCIT) 2006 8,992,320.04 2007 7,142,311.44 Sub-Total 16,134,631.48 Grand Total 243,599,024.48 ============ Provided, that such availment shall be in accordance with the terms and conditions of Section 14 of the 2008 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. EcHaAC (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer FIRB Reference: Joint FIRB-Technical Committee Meeting dated December 9, 2008.