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Tuesday, October 18, 2005
High Court removes freeze order on expanded VAT law (3:20 p.m.)
MANILA -- The Supreme Court (SC) ruled Tuesday to lift the temporary restraining order (TRO) it imposed on the expanded value-added tax (e-VAT) law.
The law will take effect on November 1, according to government sources quoted by ABS-CBN.
The SC earlier issued a freeze order on the expanded tax law following a petition seeking its nullification filed by various petitioners. The high court later however upheld the legality of the law but maintained the TRO.
The law imposes taxes on various goods and services and lifts the exemption enjoyed previously by the power and oil companies.
The expanded tax law is the centerpiece of the Arroyo government's fiscal reform program after it as suspended by the SC on July 1.
Investors in the Stock Market stayed on the sidelines Tuesday ahead of a Supreme Court ruling on the legality of the government's expanded value added tax law.
"It's going to be a welcome development if the law can finally be implemented," said Westlink Global Equities Chairman Rommel Macapagal.
Local brokerage house 2TradeAsia said the cautious market tone stems from fears further delays in the implementation of the expanded VAT law could undermine the country's chances of obtaining a credit rating upgrade that should help ease borrowing costs.(Sunnex) |
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