52.229-5 Taxes - Contracts Performed in U.S. Possessions or Puerto Rico. (APR 1984)

A substitute DLA Energy ( formerly DESC ) clause was developed to simplify, consolidate and tailor the FAR clauses to petroleum, petroleum related services, and coal. The FAR clauses only address after imposed/after relieved Federal taxes and do not address such circumstances for state and local taxes applicable to DLA Energy ( formerly DESC ) procurement. The FAR clauses also require contract prices inclusive of all applicable Federal, State and local taxes. This is not acceptable to DLA Energy ( formerly DESC ) since some taxes at all levels are excluded from certain fuel products under Government use criteria in the Internal Revenue codes.