Palace awaits SC word on toll VAT

August 17, 2010 9:58 am 

MANILA, Aug. 17 — Malacanang will await the Supreme Court (SC) decision regarding legality of levying value-added tax (VAT) on toll charges.

Communications group Secretary Herminio Coloma gave this assurance, noting Malacanang recognizes SC's role as ultimate arbiter in legal disputes.

"SC is the interpreter of laws while the executive branch implements these," he said.

Earlier this month, SC issued a temporary restraining order against Malacanang's plan on subjecting to VAT charges from using tollways.

This developed as several sectors opposed such plan, claiming it is illegal since Republic Act 9337 or the Reformed VAT law excludes charges for using such roads.

The government was supposed to commence implementing on Aug. 16 its plan to levy VAT on toll fees.

However, Malacanang maintains this plan is in line with existing regulations.

"There's a VAT law which the previous administration failed to fully implement," Coloma said.

He noted that Malacanang believes such happened since the negative public response expected from levying VAT on toll charges will only further bring down the popularity rating of former president Gloria Macapagal-Arroyo and her administration.

The present administration has no such problem to worry about before implementing the law, he added. (PNA)

LDV/CJT/mec

Comments

Comments are closed.