Brief History of AFPCES Tax Exempt/Subsidy Privilege
AFPCES was created pursuant to Presidential Letter of Instruction Nr 31 as amended by LOI 31-A. To give impetus to this worthy endeavour, then President Marcos issued Presidential Decree Nr 83 granting AFPCES tax free privilege. On 10 October 1984, he issued PD Nr 1955 withdrawing the tax free privilege of the Service. However, on November of the same year, he approved the letter request of Mrs Aida Ver for the exemption of AFPCES from the implementation of PD Nr 1955. This approval was not implemented.
On 02 December 1986, Mrs Corazon Aquino, the new president of the Republic, restored the tax exemption privilege of AFPCES pursuant to Executive Order Nr 76. Fifteen days later Mrs Aquino withdrew the privilege through EO Nr 93. This also empowered the Fiscal Incentive Review Board (FIRB) the power to grant subsidy and exemption.
On 13 April 1987, he FIRB granted AFPCES temporary tax exemption pursuant to FIRB Resolution Nr 5-87. On June 1989, the FIRB issued a Resolution Nr 12-89 withdrawing the tax exemption of the Service effective 01 January 1990. In lieu thereof, AFPCES was granted tax subsidy amounting to P50M. the P50M subsidy was not immediately utilized as the BIR has yet to publish the regulation to implement the subsidy. In that year, AFPCES suffered losses. Similarly, the 1991 AFPCES performance showed losses due to the delay in the release of the subsidy as the 1991 budget was not approved in the middle of 1991.
Since then, the Service continuously received tax subsidy until it was suspended by virtue of Administrative Order Nr 372 dtd 27 December 1997. When President Fidel V Ramos vetoed Section 13 of General Appropriations Act of 1998, the hope of AFPCES for subsidy release vanished into thin air. AFPCES, however, is still pursuing its goal to get the tax subsidy. (History seemed to repeat itself as AFPCES suffered 12M losses in 1998)
AFPCES was created pursuant to Presidential Letter of Instruction Nr 31 as amended by LOI 31-A. To give impetus to this worthy endeavour, then President Marcos issued Presidential Decree Nr 83 granting AFPCES tax free privilege. On 10 October 1984, he issued PD Nr 1955 withdrawing the tax free privilege of the Service. However, on November of the same year, he approved the letter request of Mrs Aida Ver for the exemption of AFPCES from the implementation of PD Nr 1955. This approval was not implemented.
On 02 December 1986, Mrs Corazon Aquino, the new president of the Republic, restored the tax exemption privilege of AFPCES pursuant to Executive Order Nr 76. Fifteen days later Mrs Aquino withdrew the privilege through EO Nr 93. This also empowered the Fiscal Incentive Review Board (FIRB) the power to grant subsidy and exemption.
On 13 April 1987, he FIRB granted AFPCES temporary tax exemption pursuant to FIRB Resolution Nr 5-87. On June 1989, the FIRB issued a Resolution Nr 12-89 withdrawing the tax exemption of the Service effective 01 January 1990. In lieu thereof, AFPCES was granted tax subsidy amounting to P50M. the P50M subsidy was not immediately utilized as the BIR has yet to publish the regulation to implement the subsidy. In that year, AFPCES suffered losses. Similarly, the 1991 AFPCES performance showed losses due to the delay in the release of the subsidy as the 1991 budget was not approved in the middle of 1991.
Since then, the Service continuously received tax subsidy until it was suspended by virtue of Administrative Order Nr 372 dtd 27 December 1997. When President Fidel V Ramos vetoed Section 13 of General Appropriations Act of 1998, the hope of AFPCES for subsidy release vanished into thin air. AFPCES, however, is still pursuing its goal to get the tax subsidy. (History seemed to repeat itself as AFPCES suffered 12M losses in 1998)