Supreme Court issues TROs vs toll tax, SLEx rate hike

[Monseratto]

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

[silverrain]

Kudos to SC magistrates for acting quickly.

[manoy77]

Ayos!!!!!!

Ano ngayon masasabi mo Cheif BIR..... ????

[uls]

bad yan for investors

actually bad yan for the country's image

di makabawi ang mga Malaysian investors

sigurado they will put on hold further investments in the country

[shakatak70]

Agree bad for the image of our dearly beloved country. Bakit kasi padalos-dalos ang BIR at TRB.

1. the motoring public are already paying taxes even if not using the expressways (road user tax asan to napunta)
2. Toll Fee - is already a form of tax for using the expressway facilities, then why impose a VAT on tax.
3. VAT is only for services rendered and product sold by private companies, why putting VAT on a government services such as the use of expressways.

I understand the government needs of funds but not this way, at the expense of the whole population within Metro Manila.

[manoy77]

Agree bad for the image of our dearly beloved country. Bakit kasi padalos-dalos ang BIR at TRB.

1. the motoring public are already paying taxes even if not using the expressways (road user tax asan to napunta)
2. Toll Fee - is already a form of tax for using the expressway facilities, then why impose a VAT on tax.
3. VAT is only for services rendered and product sold by private companies, why putting VAT on a government services such as the use of expressways.

I understand the government needs of funds but not this way, at the expense of the whole population within Metro Manila.

Kulang sa funds? So dapat bawasan nila siguro ang Pork Barrel ng mga LAW MAKERS natin kasi napupunta lang naman yun sa bulsa ng mga tongressman.

[wowiesy]

Agree bad for the image of our dearly beloved country. Bakit kasi padalos-dalos ang BIR at TRB.

1. the motoring public are already paying taxes even if not using the expressways (road user tax asan to napunta)
2. Toll Fee - is already a form of tax for using the expressway facilities, then why impose a VAT on tax.
3. VAT is only for services rendered and product sold by private companies, why putting VAT on a government services such as the use of expressways.

I understand the government needs of funds but not this way, at the expense of the whole population within Metro Manila.

my wife is a tax practitioner... kung point of view of tax code lang talaga.. tama yung punto ng BIR c/o Ms. Kim Henares... no stated explicit exemption on toll use kaya taxable... I think Congress and the Senate did a lousy job on this... ang hope na lang is kung makikita sa deliberations ng VAT law na nabanggit ang toll.. (at least may isang chain of chicken based foods ay specifically mentioned na exempted during the deliberations kaya explicitly exempted na sila sa VAT)...

political issue lang talaga since tatamaan ang transport sector then eventually ang consumer goods because of logistics issue (through the tollways by land)... and commuting of course by the general public..

natanong ko din nga kay wifey... VAT is essentially input and output.. for you to claim input tax, may mga requirements na dapat sundin (like TIN and company name of seller and buyer on the invoice itself)... yan pa lang problema na... will the Toll operators provide an OR with the information? Paano hahaba ang pila dahil kukunin pa ang pangalan at iencode ang TIN number? pag hindi mo naman ginawa yung requirement, for sure hindi mo ma claim input.. and effect is the whole 12% ang sasaluhin mo.. at least sana kung business gamit yung byahe thru toll, sana man lang magamit yung input para hindi full 12% ay salo ng taxpayer..


(Here lies the duplicity / hypocrisy of government pag dating sa tax administration.. gusto nila lahat sumunod sa batas ng buwis... batas ng buwis, bukod sa pagbabayad mismo ay may mga regulations na sinusunod para maka claim ka ng dapat iclaim, dahil yun ay binigay ng batas bilang exemption o pabor sa mga citizens nya... with this move of BIR na kolek lang ang habol pero hindi yung documentation, they in a way allow for non compliance of the tax laws... so sa kaliwang kamay dapat sumunod sa batas.. pero sa kanang kamay ay hindi susunod? ano ibig sabaihin nun? )


Sa point of view ng BIR, basta maka kolekta.. lookout na ng taxpayer kung paano yung documentation para maka claim sya ng input... sa transport sector pa lang yan... palibhasa hindi ata nagbabayad ng toll ang convoy ng presidente (out of courtesy?) so hindi sya dapat mag worry about paying VAT and using the VAT input?

My point: Akala ko ba kami ang boss nyo ha PNoy? Eh bakit bukod na sa kami na ang magbabayad (oo na sige na lifeblood ng government)... pahirapan pa kami sa documentation? The least the government can do or the BIR, is plantsahin ng husto bago iimplement.. now kung TRB and the toll operators are pussyfooting, then use the press / media para medyo mapahiya yung TRB para kumilos sila.. kung hindi mahiya then bring a case to court to compel TRB to do it... hindi yung pati consumers NA MGA BOSSING NYO (kung totoong boss ang tingin nyo sa amin ) ay nadadamay!!

Mas gugustuhin ko pa na mag wang wang si PNoy (siya lang ah) sa kalsada at wag sumunod sa batas trapiko (kapag naka convoy), basta gawin mo lang mas madali sumunod sa pagbabayad ng buwis at pag account and document ng mga taxes... yan ang service di ba? Yung pag sunod mo sa traffic and walang wang wang is all symbolic naman eh... (much like the symbolic meaning of what's going on sa Luisita)...