|
Tuesday, September 20, 2005
Freeze order on expanded tax stays: Supreme Court
MANILA -- Opponents of the implementation of the expanded value-added tax (e-VAT) led by House Minority Leader Representative Francis Escudero filed Monday a motion for reconsideration on the Supreme Court decision upholding the constitutionality of the measure.
A separate motion filed by Bataan Governor Enrique Garcia argued that government would still be able to raise the same amount of revenues by imposing the three percent gross tax instead of the seven percent cap on input VAT.
The Supreme Court upheld the constitutionality of the tax law in its September 1 ruling but said the temporary restraining order it issued on the measure's implementation would stay until the case is decided with finality.
SC spokesman Ismael Khan Jr. said the appeal of e-VAT opponents would be in the SC agenda during its regular session on Tuesday.
"I expect that the finality of the decision would take place probably within the next two or three weeks. The implication is that the temporary restraining order remains for as long as the SC has not come to any final resolution of the motions for reconsiderations," he said.
In Malacañang, the Arroyo administration remains firm in its goal to implement the expanded VAT because it will benefit the people in the long run.
Anti-expanded VAT petitioners were able to beat the SC-issued deadline of September 17, which is a Saturday, by filing their motions for reconsideration Monday.
Escudero, in his petition, cited three grounds why the high court should permanently stop the implementation of RA 9337 or the Expanded VAT Law, which was promulgated in gross violation of the 1987 Constitution.
He said the deletion of the "no pass-on" provisions for the sale of petroleum products and power generation services constituted "grave abuse of discretion amounting to lack or excess of jurisdiction on the part of the bicameral conference committee."
He said the tax law grossly violates the constitutional imperative on exclusive origination of revenue bills under Section 24, Article VI of the 1987 Constitution, which states that, "all revenue bills shall originate exclusively from the House of representatives."
Escudero also questioned the standby authority given to the President to increase the VAT, particularly the recommendatory power granted to the secretary of finance, as it constitutes undue delegation of legislative authority.
"The failure of the bicameral committee to follow procedures and its arbitrary deletion of the protective measures willed by the people, arguably, infects the whole law. Republic Act 9337 is nowhere near the revenue bills from the House. It is, with due apologies, a legislative monster which should be slain at sight by the mighty sword of the Constitution," he said.
Escudero said the findings of the court that there was no grave abuse of discretion committed by the bicameral committee when it deleted the "no pass-on" provision rests on the perception that there was disagreement between House Bill 3705 and Senate Bill 1950 with regard to the "no pass-on" provisions.
He argued that there was no conflict between the two bills therefore no deletion should have been made by the bicameral committee.
On the sale of generated power, both bills agreed that the end consumer shall not bear the burden of applicable VAT although there were variations in phraseology.
"Whether it is called 'power generation' as in House Bill 3705 or 'electricity by generation companies and services of transmission companies and distribution companies' as in Senate Bill 1950, the object of the tax is still, in essence, the sale of electricity," the petitioner said.
He added that although Senate Bill 1950 failed to carry a "no pass-on" provision does not mean that it is in conflict with the House version.
"The bicameral committee should not spring into action as regards the 'no pass-on' provisions. Considering that it is a mere agent of both Houses, the bicameral committee should have proceeded with extreme caution and prudence," he added.
Aside from this, Escudero said the e-VAT law violates the Constitutional provision giving the House of Representatives exclusive authority to formulate tax measures.
He said the Senate and the bicameral committee might only propose amendments that are relevant to the revenue bill as passed by the House.
"In the case at bench, it is clear that the bicameral committee should not have considered the non-VAT amendments introduced by the Senate Bill 1950. Whatever disagreeing provisions there were, these should have been limited to the VAT. Not so. The bicameral committee went on a taxing spree instead," Escudero said.
Aside from the House minority bloc and Garcia, also expected to file their respective motions for reconsiderations are the petroleum dealers' association, the party-list group Abakada-Guro, and the Senate minority bloc led by Senator Aquilino Pimentel Jr.
The government had said it is losing about P4 billion to P5 billion every month or P130 million daily as a result of the TRO.
Malacañang, meanwhile, remained firm on its stand that the implementation of the e-VAT would best serve the welfare and interest of the people, particularly the poor.
Press Secretary Ignacio Bunye, who is also presidential spokesman, also assured that Malacañang respects the decision of the SC to retain the restraining order on the e-VAT law.
Bunye denied that Malacañang is behind efforts in Congress to amend the law.
He said the administration's position is clear and that is to push through with the implementation of the e-VAT.
Albay Representative Joey Salceda authored a resolution in the House, which has reportedly gained support from at least 150 other lawmakers, suspending the imposition of VAT on oil and power. A similar resolution in the Senate is also being authored by Senator Manuel "Mar" Roxas II.
Presidential adviser for political affairs Gabriel Claudio said the move in Congress is an independent initiative, not a party initiative.
The finance department said deferring the VAT on oil and power will cost the government P36 billion next year. If the law is implemented in its entirety, the VAT is expected to generate at least P78 billion to P83 billion in funds by next year
Bunye reminded members of Congress to always bear in mind the welfare of the people, particularly when deliberations on proposed amendment of the law starts.
He said the e-VAT is necessary in sustaining fiscal stability and investor confidence, which are both indispensable to job creation. (ECV/JMR/Sunnex)
(September 20, 2005 issue)
Write letter to the editor. Click here.
Join the Sun.Star message board. Click here. |
|
|
|
[return to top]
[home]
|
|
Ombud to Cebu solon: Where is the P26.5M?