Senators Friday insisted that the planned imposition of the 12-percent Value Added Tax  (VAT) on road toll by the Bureau of Internal Revenue (BIR) has no legal basis and should be scrapped.

Sen. Francis Escudero said he would personally advise BIR Commissioner Kim Henares to first study the VAT law “really well” to avoid putting President Benigno Aquino III in a bad light.

During Thursday’s hearing at the Senate, Henares said the implementation of the 12 percent VAT would push through on Monday (August 16).

“I would advise the BIR Commissioner to study the VAT law really well to avoid putting the President in a possible awkward situation if she is reversed by the courts,” Escudero said.

“It is clearly a tax on a tax which is not allowed by law. Besides, (presidential spokesperson Edwin) Lacierda is hair-splitting when he claimed it is not a new tax because it is. Pabigat ito sa taombayan (This is an added burden to the people),” he added.

Senators had earlier insisted that imposing an increase in toll fees is a form of a new tax.

Sen. Franklin Drilon said the law on VAT clearly stipulates that only air and sea transportation are covered and land transportation are exempted.

Drilon said they would leave it to the Supreme Court to rule on the interpretation of the law as he noted that the BIR has a different analysis on the provisions of the VAT law which he said is clearly unacceptable.

“We are in an open society and we have a system that states that the Supreme Court  is  the one interpreting the law. The best way for us is to just let the SC interpret it because we have different  way of interpreting the law. We believe that the BIR's interpretation is  wrong,” Drilon said.