Malacañang on Tuesday said it will not intervene in the ensuing squabble between the Toll Regulatory Board (TRB) and the Bureau of Internal Revenue (BIR) over imposition of 12 percent value-added tax (VAT) in toll fees.

Deputy presidential spokesperson Gary Olivar said it is up to the two agencies to reconcile their differences over the issue, saying that there is no need for the Palace to meddle.

The TRB, the sole government agency tasked to regulate the toll way industry, rejected a toll fee increase that would be implemented on April 1 as directed by the BIR. It argued that that the BIR’s imposition of toll fee increase is not included as a component of the parametric formula which provides that the toll operation is not specifically listed in the VAT law.

Olivar said that Malacañang is counting on the agencies concerned to discuss their concerns and come up with a fair and square resolution. “I see no reason why these agencies cannot settle this.” (Charissa Luci)