The attack happened early in the morning at a bakery on the southern island of Mindanao.

A military official said guerrillas from the New People's Army (NPA) carried out the attack after the owner failed to pay "revolutionary taxes".

The NPA is the military wing of the Communist Party of the Philippines.

Five men on two motorcycles carried out the attack on the Park n Go bakery in Nabunturan, in the Compostela Valley region, the town police chief told local media.

Extortion was said to be the motive for the attack. A military official said communist rebels had demanded money from almost all the businesses in the area, the Associated Press news agency said.

The NPA is based on Mindanao and is thought to have several thousand members.

The US listed it as a terrorist group in 2002, and peace talks between the government and the NPA are stalled.

Recent months have seen an upsurge in activity by the rebels.

Clashes in Mindanao at the weekend left at least 15 guerrillas and two policemen dead. Two soldiers were shot and killed by suspected rebels in Nabunturan on Monday.

BBC