Manila: The Supreme Court stopped the government from its plan to raise toll fees following complaints from lawmakers and consumer's group that toll fees ballooning by 300 per cent, would inconvenience private and mass commuters, a spokesperson said yesterday.
A temporary restraining order (TRO) was issued against the proposed implementation of a 12 per cent value added tax (VAT) on toll rates at the South Luzon Expressway, said Supreme Court spokesman Midas Marquez.
"The respondents, DOJ (Department of Justice) and BIR (Bureau of Internal Revenue) must file their comments within 10 days," Marquez said.
VAT on toll fees was part of the law which was passed by Congress during the time of former President Gloria Arroyo, but its collection was deferred at the time, explained President Benigno Aquino's spokesperson Edwin Lacierda.
Only the Apex Court can stop the plan of the justice department and the BIR from implementing VAT on toll fees in all major road arteries from Metro Manila, experts said.
Earlier, a group of lawyers led by Ernesto Francisco, former congressman Renato Diaz and former assistant trade secretary Aurora Timbol filed for the TRO, saying that toll fees were not included in the imposition of value added tax.
In a hearing on Thursday, senators said they were opposed to the plan of BIR commissioner Kim Jacinto-Henares to impose VAT on toll fees starting August 16.
The BIR said it could collect 1 billion pesos (Dh83.3 million) a year from the imposition of VAT on toll fees on major roads, coastal road, elevated road, and arterial roads to southern Luzon.
Senate President Juan Ponce Enrile, Senators Ralph Recto and Franklin Drilon who belong to Aquino's Liberal Party, said that government services were VAT-free, adding that tax on toll fees would result in a chain reaction such as high transportation fee for mass commuters and high toll fees on private car users.
Sen Recto, VAT's author said that BIR was wrong in interpreting VAT, adding that BIR was not justified in its plan to add VAT on toll fees.
