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

December 20, 2007 FIRB RESOLUTION NO. 020-07 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; SHECcT WHEREAS, such services and facilities are recognized as integral adjuncts of the military sector on a global basis; WHEREAS, the FIRB already approved the amount of P270,263,631.00 to cover the taxes due on items which the AFPCES has purchased and sold to its intended beneficiaries for the year 2007, per FIRB Resolution No. 7-07; CTSDAI WHEREAS, the AFPCES applied for additional tax subsidy in the amount of P70,037,332.49 corresponding to its additional purchases for the year 2007; CcEHaI WHEREAS, the additional tax subsidy is intended to support additional purchases for its newly opened outlets located in Camp O'Donnell, Capas, Tarlac; Camp Panacan, Davao City; and AFP Logistics Command, Camp Aguinaldo, Quezon City; WHEREAS, there is also a need to ensure that the benefits of these services and facilities are extended only to their intended beneficiaries; ESTDcC NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for subsidy of the AFPCES in the amount of P70,037,332.49 only, representing the taxes on items purchased and subsequently sold by it to its intended beneficiaries only, for 2007, in accordance with the following breakdown: Coverage Amount in Pesos Ratio to Total Value Added Tax (VAT) Value Added Tax (VAT) on Merchandise and other Petroleum, Oil and Lubricant Products 56,630,129.85 80.86% Excise Tax Excise Tax on Alcohol (Beer, Wines and Liquor) 13,407,202.64 19.14% TOTAL 70,037,332.49 100.00% ========== ======= 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 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. 31-2003. HTCSDE (SGD.) GIL P. MONTALBO Director Department of Budget and Management (SGD.) ELMER C. HERNANDEZ Undersecretary Department of Trade and Industry (SGD.) MARGARITA R. SONGCO Deputy Director-General National Economic and Development Authority (SGD.) JAMES H. ROLDAN Assistant Commissioner Bureau of Internal Revenue (SGD.) ANGELITO G. URSABIA Officer-In-Charge, Collection Service Bureau of Customs (SGD.) LINA D. ISORENA Executive Director Head, FIRB Secretariat National Tax Research Center (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer FIRB