MANILA — A second petition has been filed by a consumer advocacy group before the Supreme Court (SC) seeking to halt the implementation of Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Act.
In a 40-page petition filed before the SC Monday, Laban Konsyumer Inc. and its president, former Trade Undersecretary Victor Dimagiba, said the petition specifically slammed the imposition of excise taxes on petroleum products and coal, saying the law “will further beset those belonging to the low income and poor families whose resources are extremely finite for their subsistence.”
“The increase and/or imposition of excise taxes on coal, liquefied petroleum gas (LPG), diesel, and kerosene are clearly violative of the basic principles and inherent limitations on Philippine taxation,” petitioners said.
They said provisions of the TRAIN Law also violates due process, and equal protection clause “considering that the exorbitant excise taxes on these basic commodities stand to greatly impact and impose heavy financial burden on low-income and poor families.”
For example, the group said the increase in excise tax on petroleum products would have a domino effect on the prices of goods since public transportation uses diesel, which would mean higher fares and increased cost of transporting goods.
Laban Konsyumer said the TRAIN Law is “inequitable and regressive,” arguing that taxation is equitable only when its burden falls on those who can afford to pay.
“If the TRAIN Law is truly the biggest gift of the government to the Filipinos, then by all means, the provisions thereof should muster the test as to its reasonability and propriety particularly in relation to the segment of our society whose voice we have long forgotten–the majority of the Filipinos who have less in life, and incidentally, those who may not fully understand the full extent of the TRAIN Law,” the petition read.
Laban Konsyumer sought the immediate issuance of a temporary restraining order (TRO) to stall the implementation of the law or a status quo ante order (SQAO) to bring back the conditions prior to the effectivity of the challenged tax measure.
Named respondents in the petition were Executive Secretary Salvador Medialdea, Finance Secretary Carlos Dominguez III, Internal Revenue Commissioner Caesar Dulay, House Speaker Pantaleon Alvarez, and Senate President Aquilino Pimentel III.
The first petition against the TRAIN Law was filed on January 11 by Representatives Antonio Tinio of ACT Teachers party-list, Carlos Zarate of Bayan Muna, and Ariel Casilao of Anakpawis.
In response, Solicitor General Jose Calida slammed the petition filed by militant lawmakers before the Supreme Court (SC) seeking to halt the implementation of Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Act.
“Lack of quorum of Congress is that all you have to nullify the TRAIN Law? Thank you, your Honors, for making my job easier,” Calida earlier said in his Twitter account, noting that such argument was a flimsy excuse.
TRAIN, which was signed into law by President Duterte last December 19, was the first package of the government’s proposed Comprehensive Tax Reform Program (CTRP), seen to generate additional revenue to fund the country’s investment requirements.
It exempts those with an annual income of PHP250,000 and below from personal income tax and imposes excise taxes on petroleum products, automobiles, and sugar-sweetened beverages in order to offset revenue losses from lowering personal income taxes.
Due to the CTRP, the National Economic and Development Authority (NEDA) earlier said the country’s real gross domestic product (GDP) would be higher by 0.5 to 1.1 percent by year 2022. (Christopher Lloyd Caliwan/PNA)
