Toll VAT deferred

By JC BELLO RUIZ
July 23, 2011, 7:48pm

MANILA, Philippines — Tollway users can heave a sigh of relief for now as Malacañang said it has no definite plans yet on the imposition of the 12 percent value-added tax (VAT) on toll on expressways despite the Supreme Court (SC) approval to implement it.

Deputy Presidential spokesperson Abigail Valte said Saturday that Malacañang remains open to calls by public transport groups for President Benigno S. Aquino III to study and consider scrapping the plan to impose VAT on toll amid rising prices of oil and prime commodities.

Valte said this despite reports that Bureau of Internal Revenue Commissioner Kim Jacinto Henares has said that the BIR will implement the VAT on toll next month.

“I think that is something that has to be considered and studied. The decision was only issued yesterday (Friday) and the (Palace) lawyers are waiting for a copy of the decision. They will have to study the decision first then give the necessary advice to the President,” Valte said in an interview with government radio dzRB.

 “We’ll take a look at all sides and we have to know the parameters that are set in the decision, if any, so we need to see the decision first,” she added.

Imposing the 12-percent VAT on toll would generate P1 billion in of taxes for the government every month, Henares said.

The VAT on toll should have been implemented on August 16, 2010 if not for the TRO that the SC issued then.

But in a decision written by Justice Roberto A. Abad last Friday, the SC upheld the legality of Revenue Memorandum Circular 63-2010 issued by the BIR on July 13, 2010 imposing VAT on all tollway operators in the country.

Comments

bakit pa idedeferred ito eh malaki naman pala ang kikitain ng gobyerno, ituloy na lang ninyo ito, hindi na baleng pasanin uli ito ng mamamayan, okey lang total pinapatay na rin lang ninyo ng unti unti ang mamamayan eh sigihan na ninyo para LUMAKI ANG INYONG MANANAKAW, wala rin pala kayong pinagkaiba sa sinundan ninyo, na puro galit at batikos kayo. presidente pnoy, tingnan mo naman ang mga nasa paligid mo, ang IKASISIRA ng mga sinasabi mo ay ang SOBRANG PAGTITIWALA SA MGA TAUHAN MO. mas mabuti pa iyong mga NAGSASABI NG PROBLEMA SA IYO dahil iyon ang mga TAPAT sa tungkulin. pero iyong mga PURO OKEY AT NO PROBLEM ang report sa iyo PLS BEWARE OF THEM kasi iyan ang MAGWAWALANGHIYA SA IYO. if mali pakitanong kay JUANA CHANGE, okey ba edwin lacierda at jojo ochoa

BIR issued Revenue Regulation for a VAT on toll and defended when challenged in Court. However, when upheld by the Higher Court, the Palace says wait because they have to study the social impact of the tax...Was the Revenue Circular issued without consultation with the Palace?

Pity the poor helpless consumer. There will be more funds at the coffers of the government. The irony is these funds will not go to those who are really in need, like health, school facilities, food programs, feeder roads, affordable housing and a thousand more projects that the government time and again intentionally neglects. Whose pockets will these funds enrich, only the powerful of the politicians knows.