RMC No. 18-2005 — Publishes the full text of Circular Letter No. 2005-04 issued by the Acting Secretary of the Department of Budget and Management entitled “Implementation of Administrative Order Nos. 103 and 117” Digest | Full Text | Annex

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City SUBJECT: May 12, 2005 TO : REVENUE MEMORANDUM CIRCULAR NO. 18 - 2005 Publishing the full text of CIRCULAR LETTER NO. 2005-04 by the Acting Secretary of Department of Budget and Management dated April 1, 2005 entitled Implementation of Administrative Order Nos. 103 and 117 All Internal Revenue Officers, Employees and Others Concerned For the information and guidance of all internal revenue officers, employees and others concerned, quoted hereunder is the full text of CIRCULAR LETTER NO. 2005-04 by the Acting Secretary of Department of Budget and Management dated April 1, 2005: "REPUBLIC OF THE PHILIPPINES Department of Budget and Management DBM Bldg. I, Gen. Solano St., San Miguel, Manila CIRCULAR LETTER No. 2005-04 April 1, 2005 TO : ALL HEADS OF NATIONAL GOVERNMENT AGENCIES (NGAs) INCLUDING STATE UNIVERSITIES AND COLLEGES (SUCs), GOVERNMENT �OWNED AND/OR �CONTROLLED CORPORATIONS (GOCCs), GOVERNMENT FINANCIAL INSTITUTIONS (GFIs); AND ALL OTHERS CONCERNED SUBJECT: IMPLEMENTATION OF ADMINISTRATIVE ORDER NOS. 103 AND 117 1.0 Purpose This Circular is being issued to: 1.1 Remind agencies on the implementation of the austerity measures under Administrative Order No. 103, "Directing the Continued Adoption of Austerity Measures in the Government" dated August 31, 2004; and the adoption of the four-day workweek pursuant to Administrative Order No. 117, "Providing for Adjusted Official Hours in Departments, Bureaus, Offices and Other Agencies in the Executive Branch, Including Government- Owned and Controlled Corporations, for the Months of April and May 2005."

1.2 Prescribe the reporting system on the implementation of A.O. Nos. 103 and 117. 2.0 Adoption of Austerity Measures under AO No. 103 2.1 Agencies are reminded to continue with the implementation of the austerity measures under AO No. 103 which are necessary to enable the government to meet its fiscal targets. In line with the energy conservation program, particular attention is called on Section 1 (b) of AO No. 103 which orders the reduction of at least ten percent (10%) in the cost of the consumption of fuel, water, office supplies, electricity and other utilities. 2.2 To standardize the reports on the results of the austerity measures, all agency heads shall submit to the Office of the Undersecretary for Operations, Department of Budget and Management (DBM) monthly reports on the savings generated from such measures using the attached Form A, Report on Savings from AO No. 103. On or before the 10th day of each month, Form A shall be submitted for the savings generated in the immediately preceding month as well as the cumulative total for the current year. 3.0 Adoption of the Four-Day Workweek Pursuant to AO No. 117 3.1 All heads of departments and equivalent agencies shall submit to DBM on or before April 5, 2005, the list of agencies under or attached to their respective departments which are implementing the four-day workweek, specifying the affected organizational units in cases where not the entire agency is adopting the same. 3.2 All agency heads shall also submit to the Office of the Undersecretary for Operations, DBM reports on the savings generated using the attached Form B, Report on Savings Due to the Four-Day Workweek, in addition to Form A. The report for the month of April shall be submitted on May 10, 2005 while the report for the month of May shall be submitted on June 10, 2005. 3.3 In order to achieve the objectives of the energy conservation program, agencies are enjoined to observe the following cost-cutting measures on electricity and fuel as suggested by the Department of Energy: Electricity Conservation 3.3.1 Air-Conditioning units shall be turned-on one hour after the official work hours start in the morning, turned-off one hour before closing of offices, and set at low cool from 12:00 NN to 1:00 PM. 3.3.2 Computers shall strictly be for official use only and turned-off when not in use. 3.3.3 Forty-watts fluorescent tubes shall be replaced with 36-watts fluorescent tubes. Incandescent lamps shall be replaced with compact fluorescent lamps. 3.3.4 Except for the physically challenged and those carrying heavy loads, elevators shall be used only in going more than two floors up and down. 2

Fuel Conservation 3.3.5 There shall be no unauthorized use of official motor vehicles during the three-day weekend. 3.3.6 To improve gas mileage: � Air filters shall be checked and replaced regularly. � Proper wheel alignment shall be maintained. � Engines shall be properly tuned. � Tires shall be inflated to the proper pressure. � Excessive warm-ups and engine idling for long periods shall be avoided. 4.0 For compliance. (SGD) MARIO L. RELAMPAGOS Acting Secretary All revenue officials and employees are enjoined to give this Circular as wide a publicity as possible. (Original Signed) NORMA L. LIPANA OIC � Deputy Commissioner Resource Management Group 3