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

December 15, 2009 FIRB RESOLUTION NO. 025-09 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 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 P213,329,094.54 to cover the taxes due on items it purchased and sold to its intended beneficiaries; WHEREAS, there is also a need to ensure that the benefits of these services and facilities are extended only to their intended beneficiaries; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to grant tax subsidy to the PNPSSS in the amount of TWO HUNDRED THIRTEEN MILLION THREE HUNDRED TWENTY NINE THOUSAND FIVE * NINETY FOUR AND 54/100 PESOS (P213,329,094.54) only, representing taxes on items purchased and subsequently sold by its outlets to their intended beneficiaries, for the year 2009, in accordance with the following breakdown: cHAaEC Coverage Amount in Pesos Ratio to Total (%) Value Added Tax (VAT) on: Grocery Items 148,045,041.47 69.40 Uniform 14,692,732.17 6.89 Pharma Products 918,295.76 0.43 Cigarettes 20,769,230.77 9.74 Liquor 8,307,692.31 3.89 Petroleum Products 18,365,955.22 8.61 211,098,947.69 98.95 Excise Tax on: Petroleum Products 2,230,146.85 1.05 Total 213,329,094.54 100.00 ============ ===== Provided, however, that the PNPSSS 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 13 of the 2009 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. (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer-FIRB Reference: Joint FIRB-Technical Committee Meeting dated December 15, 2009.