As we have received a series of VAT assessments from the BIR due to our failure in the past to impose VAT on our postage and other products and services, effective 01 January 2006, the Philippine Postal Corporation shall be imposing 10% VAT on postage and other products and services except on the money order service.

The attached schedule of postage and fees^* is inclusive of the 10% VAT and a minimal increase to cover cost.

All previous orders, circulars and memoranda inconsistent herewith are hereby repealed and/or superseded.

Adopted: 20 Dec. 2005

(SGD.) DARIO C. RAMA
Postmaster General and CEO

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^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City