Motorists got a sigh of relief after the Bureau Internal Revenue (BIR) decided Wednesday afternoon to delay the collection of the 12-percent valueadded tax (VAT) on toll.

The BIR decision means there will be no toll increase for now.

The BIR and the Department of Transportation and Communications (DoTC) deferred the April 1 implementation of the VAT on toll “in order to thresh out the technical and operational issues” surrounding the VAT imposition.

“The Toll Regulatory Board (TRB) is expected to come up with the implementing rules or mechanics on how to implement the VAT to be imposed by BIR not later than April 30, 2010,” Malacañang said in a statement.

Revenue Deputy Commissioner for Operations Nelson M. Aspe said he was told by BIR Commissioner Joel Tan Torres via overseas call to postpone the collection of the tax. Tan Torres is in Canada attending the Overseas Economic Cooperation and Development (OECD) conference.

Aspe said the postponement was agreed upon during a meeting between officials of the BIR and TRB in Malacañang, presided over by Executive Secretary Leandro Mendoza.

The BIR had earlier declared that it will confiscate the bank deposits and other assets of tollway operators if they will not pay the 12-percent VAT imposed on private motorists using their facilities starting Thursday.

Aspe issued the warning as tollway owners expressed reservation over the immediate implementation of the BIR decision to re-impose the VAT.

Aspe said the BIR is determined to collect the tax to offset losses from last year's devastating typhoons and tax eroding measures. The BIR expects to generate P1.3 billion annually from the new imposition.

“There are no new tax laws so we have to rely on existing measures to meet this year's collection target of P830 billion,” Aspe said.

He said the collection of the VAT is long overdue as it has been included in the Comprehensive Tax Reform Program (CTRP) approved by Congress in 1998.

It is not one of these entities exempted from VAT like education institutions.

Meanwhile, Malacañang maintained its hands off stance over the issue as it reminded the BIR and the TRB not to put in jeopardy the delivery of the public services.

“It is very important there will be no interruption in the (delivery of the) services… It should not affect the motorists,” Presidential Spokesperson Ricardo Saludo said.

He advised the concerned agencies to consult with the Department of Justice (DoJ) to thresh out the technical and operational issues.

The TRB, the sole government agency tasked to regulate the tollway industry, rejected the toll increase that would have been implemented effective Thursday.