THE Commission on Audit has commended the management of the Armed Forces of the Philippines Commissary and Exchange Service (AFPCES) under Army Col. Ferdinand Geminic Ramirez for posting a P494.9-million increase in its earnings last year.
From P2.6 billion in sales in 2018, the AFPCES sold P3.1 billion worth of goods in 2019.
Government auditors said the 2019 sales performance also eclipsed the last two years’ sales targets by a combined P210.77 million – P187.25 million in 2018 and P23.52 million in 2019.
They noted that the commissary was able to keep its shelves stocked with items for everyday use of customers in all of its 42 outlets nationwide, including its convenience stores, drug stores and fuel stations.
“We commended the management initiatives for the sales improvement for the years 2018 and 2019 and recommended that they continue to make available all saleable/fast moving items to its authorized customers,” the audit team said.
The AFPCES was established in 1972 as a support unit to the Armed Forces but was recognized as a regular unit of the AFP General Headquarters on January 31, 1987.
It receives tax subsidy from the Department of Finance through the Bureau of Internal Revenue, which means general merchandise sold in its stores are not subject to value-added tax while alcoholic drinks, fuel, and cigarettes are not imposed excise taxes.
Based on 2019 figures attached to the audit report, Greater Manila Area posted the biggest sales with P1.775 billion, followed by Northern Luzon with P427.37 million, Southern Luzon with P442.7 million, Mindanao with P267.74 million and the Visayas with P193.14 million.