Doomsday for some has been delayed...

http://www.abs-cbnnews.com/business/...slex-rate-hike

MANILA, Philippines - The Supreme Court on Friday issued separate temporary restraining orders (TROs), barring the planned imposition of the 12% value-added tax on tollways as well as the 250% hike in rates at the South Luzon Expressway.

The SC issued the TROs based on the petitions of former Nueva Ecija Rep. Renato Diaz and former Trade and Industry official Aurora Ma. Timbol, and an omnibus motion filed by lawyer Ernesto Francisco.

Diaz and Timbol questioned the imposition of the VAT, arguing that it is “unconstitutional” and an "invasion of legislative powers."

Citing a previous case involving the Manila International Airport Authority and the City of Parañaque, the petitioners said the SC has already ruled that toll fees are considered as user's taxes. Thus, imposing VAT on user's tax “is imposing a tax on a tax,” and not “a tax on sale of services," the petitioners said.

Meanwhile, Francisco raised conflict of interest concerns over the hefty hike in toll rates at SLEx, saying the current president of SLEx operator South Luzon Tollways Corp. is also with the Department of Public Works and Highways.

Malacañang and the Bureau of Internal Revenue both said Thursday that barring any court intervention, it is all systems go for the implementation of the VAT on the use of expressways starting next week.

The BIR said it expects to collect P1 billion a year from the VAT on toll.

Sen. Ralph Recto, author of the Expanded VAT Law enacted in 2005, however, said the E-VAT law never imposed a tax on road toll