Guidelines for Subsidy Availment

November 9, 1992 FIRB RESOLUTION NO. 045-92 SUBJECT : Guidelines for Subsidy Availment WHEREAS, in the evaluation of applications for subsidy availment, the FIRB is guided by the provisions of Rule II, Section 2 of the Rules and Regulations to Implement the Subsidy Provision Under EO No. 93; WHEREAS, these provisions stipulate that the grant of subsidy availment shall be based on the following criteria: (1) effect of subsidy on relative price levels; (2) relative contribution of the applicant to the revenue generation effort; (3) nature of the activity engaged in by the applicant; (4) greater national interest to be served; (5) magnitude and source of funding for the system of subsidies; (6) number of eligible applicants and their proportionate share in the system of subsidies; (7) terms and conditions for the availment of subsidies, including reporting requirements; (8) effect of the system of subsidies on international agreements of the Philippines, including precautions such that the availment of subsidies does not become the basis for countervailing action; and (9) such other considerations as may be determined by the FIRB; WHEREAS, in practice, the FIRB also uses financial capability of the applicant as a criterion although the same is not explicitly enumerated in the foregoing Rule but may be deemed subsumed under criterion No. 2 thereof (relative contribution of the applicant to the revenue generation effort); WHEREAS, there is a need to consider financial capability as an additional criterion in the evaluation of applications for subsidy availment as such is a relative indicator of the applicant's capacity to pay its tax and duty liabilities. NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to amend item No. 9 of Rule II, Section 2 of the Rules and Regulations to Implement the Subsidy Provision Under EO No. 93, to read as follows: "Such other considerations as may be determined by the FIRB, INCLUDING, BUT NOT LIMITED TO, FINANCIAL CAPABILITY OF THE APPLICANT." (SGD.) RAMON R. DEL ROSARIO, JR. Secretary of Finance Chairman FIRB References : FIRB Technical Committee Meeting dated October 23, 1992 FIRB Meeting dated November 6, 1992