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Aug 13, 2010
COMMITTEE ON WAYS AND MEANS HOLDS FIRST HEARING: Committee on Ways and Means chairman Sen. Ralph G. Recto and Committee on Finance chairman Sen. Franklin M. Drilon question Usec. Ann Lontoc of the Department of Transportation and Communication (DOTC) regarding the proposed imposition of value-added tax (VAT) on highway toll fees, which is scheduled to take effect on Monday, Aug. 16. Recto, author of the VAT law, has said that highway tolls are not covered by the VAT law and imposition of the added tax without congressional approval is against the law.
GUIMBA, Nueva Ecija — A former Nueva Ecija lawmaker and a former Department of Trade and Industry (DTI) official have filed a petition before the Supreme Court (SC) seeking to stop the Bureau of Internal Revenue (BIR) and the Toll Regulatory Board (TRB) from imposing value added tax (VAT) on toll fees starting August 16. Former Nueva Ecija Rep. Renato Diaz and former DTI Assistant Secretary Aurora Timbol both urged the SC to issue a status quo order against the BIR and TRB from imposing the VAT on toll fees.
They said that the VAT on toll fees violates the constitution and can be considered “invasion of legislative powers.” Diaz, principal author of Republic Act (RA) 8424, or the Comprehensive Tax Reform Act of 1997 and RA 7716, otherwise known as the Expanded Value Added Tax Law, said that the toll fees are not included in the coverage of sale of services subject to VAT.