Gov't to comply with SC decision on toll VAT

MANILA, Philippines - The Aquino administration would comply with whatever decision the Supreme Court (SC) might render over the value added tax (VAT) on expressway toll, a Palace official said yesterday.

“Whatever the decision of the SC, we will respect and we will only implement the decision,” presidential spokesman Edwin Lacierda said, in reaction to the latest petition filed at the SC seeking the issuance of a temporary restraining order (TRO).

He said that this is a second case against the VAT on toll and the judiciary could decide whichever way it wants to after the Court had previously ruled in a unanimous 13-0 verdict that upheld the government’s authority to collect VAT on toll.

“We leave it with the SC. So again, we are just implementing a decision of the SC and it’s up to them whether they want to change their decision on the matter or maintain their previous position,” Lacierda said.

The previous SC ruling has been rendered final and executory.

“Our obligation is to enforce the law. Kung walang (if there’s no) TRO, we will continue imposing that VAT. Kung may TRO naman (but if there’s TRO), of course, we will certainly respect the TRO of the SC.”

The Bureau of Internal Revenue (BIR) started collecting the 12 percent value-added tax (VAT) on toll fees last Oct. 1 despite the pending appeal on its imposition.

In July, the SC ruled on the legality of VAT on toll fees. In the same ruling, the Court lifted the TRO it issued on Aug. 13 last year on the imposition of the tax.

It also upheld the power of the executive branch to impose VAT on franchise grantees like tollway operators.

Meanwhile, another group has joined the bid to convince the SC to reconsider its ruling.

In a petition for intervention, concerned citizens calling themselves as Taxpayers’ Unity vs. Toll Hike in the South Luzon Expressway (Tutol-SLEX) reiterated the argument that the new measure is a form of “double taxation.”

They cited Article VI Section 28 of the Constitution, which states that, “the rule of taxation shall be uniform and equitable. The Congress shall evolve a progressive system of taxation.”

Petitioners said this means the burden of taxation should be on those who are better able to pay, not on the general public.

“Regressive taxes like the VAT on toll will only worsen the poverty and suffering of our kababayans. The VAT on toll will make the burden of a lack of a significant wage hike and soaring prices of basic commodities and services even heavier,” the group lamented. – With Edu Punay