The Supreme Court (SC) was asked on Wednesday to stop the government from imposing the 12 percent value-added tax (VAT) on tollway charges nationwide beginning next week.

This developed as allies of President Benigno S. Aquino III in the Senate strongly opposed the plan of the Bureau of Internal Revenue (BIR) to implement the 12 percent value-added tax (VAT) on toll rates at the South Luzon Expressway starting August 16 which they described as another burden to the public.

In a petition, the High Court was asked to issue a status quo order against the BIR and the Toll Regulatory Board (TRB), which are scheduled to adjust the toll rates to reflect the VAT starting August 16.

The petition was jointly filed by former Nueva Ecija Rep. Renato Diaz and former Assistant Secretary Aurora Maria Timbol of the Department of Trade and Industry.

The petitioners urged the SC to declare that toll rates are not included in the sale or exchange of services under Republic Act (RA) 8424 or the Comprehensive Tax Reform Act of 1997 and whether or not it is covered by RA 7716, otherwise known as the Expanded VAT Law.

They also want SC to declare that VAT cannot be imposed on toll without the approval of Congress, pointing out that the BIR’s act was an “invasion of legislative powers.”

BIR Commissioner Kim Jacinto Henares earlier issued a revenue memorandum circular directing TRB to implement the VAT on tollway charges starting August 16.

Henares said the VAT on toll will add P1 billion monthly to government coffers.

But Diaz and Timbol are questioning the constitutionality of the VAT on toll before the High Court.

Diaz, who claims to be the principal author of RA 8424 and one of the sponsors of RA 7716, said lawmakers did not intend to include toll as subject to VAT.

“If the lawmakers did not include toll as subject to VAT, the BIR, therefore, should not by implication nor interpretation expand what the legislators enumerated under the law,” Diaz said in the petition.