Entire Supreme Court backs TRO on toll VAT

MANILA, Philippines - The Supreme Court (SC) yesterday affirmed the temporary restraining orders (TRO) halting the imposition of increases in toll in the North (NLEX) and South Luzon expressways (SLEX).

During a full-court session, the magistrates concurred with the decision of Chief Justice Renato Corona in issuing the TRO last Friday against the imposition of a 12-percent value-added tax (VAT) on fees in the toll ways, as well as the 277-percent increase in toll rates at the SLEX.

“There was no lifting or revocation of the TROs issued by the Chief Justice against imposition of VAT and increase in toll fees during session this morning. That means the TROs stay,” said Ma. Victoria Gleoresty Guerra, acting chief of the SC public information office.

Guerra explained the TROs would stand until after the government submits its answer over the petitions questioning the VAT implementation and increase in the toll ways.

SC spokesman Jose Midas Marquez earlier said the TROs were issued by Corona to prevent irreparable damage to motorists while the Court is deliberating on the legality of the increases.

The SC had ordered the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) to explain and justify the tax measure on toll fees.

The DOF and BIR were given 10 days to submit their answer to the petitions filed by former Nueva Ecija congressman Renato Diaz and former Trade assistant secretary Aurora Ma. Timbol questioning the implementation of VAT on the usage of roads and highways.

A separate TRO was also issued granting the petitions of Albay Gov. Joey Salceda and lawyer Ernesto Francisco questioning the increase in the SLEX toll rates.

Guerra said once the government submits its answer to the petitions, the SC would review the TROs and the merits of the case.

Guerra explained the Chief Justice has the authority to issue a TRO on behalf of the entire Supreme Court when it is not in session.

The TROs issued by the Chief Justice, however, are still “subject for confirmation by the full court” in session as stated under the SC rules, Guerra said.

Following the SC decision, Malacañang said the motoring public could now heave a sigh of relief.

“At the very least, that (TRO) should help ease the burden of the consumers,” said Secretary Ricky Carandang of the Presidential Communications Office for Development and Strategic Planning.

Malacañang said it would abide by the SC decision but Carandang pointed out President Aquino is bent on keeping the government’s obligation for the investor of the SLEX and allow a return on investment.

This explains why the 277-percent increase in toll rates should have been implemented.

“The Philippines has a contractual obligation with the investor. And it’s difficult to be sending the wrong message to investors. We are looking for ways to comply with the obligation,” Carandang said.

He said Mr. Aquino had discussed the issue with Finance Secretary Cesar Purisima and BIR Commissioner Kim Henares, who are of the position that increases in toll rates at the SLEX are inevitable.

Carandang, however, clarified that a decision has yet to be made on the issue.

President Aquino hinted Monday that SLEX motorists may be forced to bear the brunt of the toll hikes, particularly the 277 percent in rates, because the previous administration had refused to implement the increase.

The administration of former president and now Pampanga Rep. Gloria Macapagal-Arroyo suspended the implementation of the toll hike.

With Mr. Aquino at the helm of the new administration, it is now burdened to implement the toll hike.

Mr. Aquino said the rules should not be changed in the middle of the game.

“We should not change the rules after we have invited our investors here. It has a serious implication on future investors in our country,” he said.

“My priority is the 250-percent increase in fees at SLEX. The franchise, I have been advised, had lapsed since 2007, which means the government has not collected for the past three years,” Mr. Aquino said.

Before the SC issued the TRO last weekend, Malacañang said it had no choice but to implement the increase in taxes on toll ways, urging the public to bear the brunt of the increase as well of impending increases of prices in basic commodities.

“In the short term, we’d rather be unpopular because in the long term, we know we will be using those funds for poverty alleviation and other programs of the government,” said Presidential spokesman Edwin Lacierda. With Delon Porcalla