Abakada v Exec Sec

7/24/2019 Abakada v Exec Sec

1/64

EN BANC

ABAKADA GURO PARTY LIST

(Formerly AASJAS) OFFICERSSAMSON S. ALCANTARA a! ED

"INCENT S. ALBANO#

G.R. No. $%&'%

Petitioners, Present:

DAVIDE, JR., C.J.,

PUNO,

PANGANIBAN,

QUISUMBING,

YNARES-SANTIAGO,

SANDOVAL-GUTIERRE,- !ers"s - #ARPIO,

AUSTRIA-MARTINE,

#ORONA,

#ARPIO-MORALES,

#ALLEJO, SR.,

A#UNA,

TINGA,

#$I#O-NAARIO, and

GAR#IA,JJ.TE ONORABLE E*ECUTI"E

SECRETARY EDUARDO ERMITA+

ONORABLE SECRETARY OF

TE DEPARTMENT OF FINANCE

CESAR PURISIMA+ a!

ONORABLE COMMISSIONER

OF INTERNAL RE"ENUE

GUILLERMO PARAYNO# JR.#

Res%on&ents.

' - - - - - - - - - - - - - - - - - - - - - - - - - '

A,UILINO ,. PIMENTEL# JR.#

LUISA P. EJERCITO-ESTRADA#

JINGGOY E. ESTRADA# PANFILO

M. LACSON# ALFREDO S. LIM#

G.R. No. $%&'/


2/64

JAMBY A.S. MADRIGAL# AND

SERGIO R. OSMEA III#

Petitioners,

- !ers"s -

E*ECUTI"E SECRETARY

EDUARDO R. ERMITA# CESAR ".

PURISIMA# SECRETARY OF

FINANCE# GUILLERMO L.

PARAYNO# JR.# COMMISSIONER

OF TE BUREAU OF INTERNAL

RE"ENUE#

Res%on&ents.

' - - - - - - - - - - - - - - - - - - - - - - - - - '

ASSOCIATION OF PILIPINAS

SELL DEALERS# INC. re0re1e2e!

3y 421 Pre14!e2# ROSARIO

ANTONIO+ PETRON DEALERS

ASSOCIATION re0re1e2e! 3y 421

Pre14!e2# RUT E. BARBIBI+

ASSOCIATION OF CALTE*DEALERS OF TE PILIPPINES

re0re1e2e! 3y 421 Pre14!e2#

MERCEDITAS A. GARCIA+

ROSARIO ANTONIO !o45 3614e11

6!er 27e ame a! 12yle o8 ANB

NORT SELL SER"ICE

STATION+ LOURDES MARTINE9

!o45 3614e11 6!er 27e ame a!

12yle o8 SELL GATE N.

DOMINGO+ BET9AIDA TAN!o45 3614e11 6!er 27e ame a!

12yle o8 AD"ANCE SELL

STATION+ REYNALDO P.

MONTOYA !o45 3614e11 6!er 27e

ame a! 12yle o8 NE: LAMUAN

SELL SER"ICE STATION+

G.R. No. $%&;%$


3/64

EFREN SOTTO !o45 3614e11 6!er

27e ame a! 12yle o8 RED FIELD

SELL SER"ICE STATION+

DONICA CORPORATION

re0re1e2e! 3y 421 Pre14!e2# DESI

TOMACRU9+ RUT E. MARBIBI

!o45 3614e11 6!er 27e ame a!

12yle o8 R


4/64

JOSELITO F. FLORDELI9A+

MOTORISTS AR"ARD

CORPORATION re0re1e2e! 3y 421

"4=e-Pre14!e2 8or O0era24o1#


MOTORISTS ERITAGE




PILIPPINE STANDARD OIL




ROMEO MANUEL !o45 3614e11

6!er 27e ame a! 12yle o8 ROMMAN GASOLINE STATION+

ANTONY ALBERT CRU9 III

!o45 3614e11 6!er 27e ame a!

12yle o8 TRUE SER"ICE STATION#

Petitioners,

- !ers"s -

CESAR ". PURISIMA# 4 741=a0a=42y a1 Se=re2ary o8 27e

De0ar2me2 o8 F4a=e a!

GUILLERMO L. PARAYNO# JR.# 4

741 =a0a=42y a1 Comm4114oer o8

I2eral Re>e6e#

Res%on&ents.

' - - - - - - - - - - - - - - - - - - - - - - - - - '

FRANCIS JOSEP G. ESCUDERO#"INCENT CRISOLOGO#

EMMANUEL JOEL J.

"ILLANUE"A# RODOLFO G.

PLA9A# DARLENE ANTONINO-

CUSTODIO# OSCAR G.

MALAPITAN# BENJAMIN C.

G.R. No. $%&;%?


5/64

AGARAO# JR. JUAN EDGARDO M.

ANGARA# JUSTIN MARC SB.

CIPECO# FLORENCIO G. NOEL#

MUJI" S. ATAMAN# RENATO B.

MAGTUBO# JOSEP A.

SANTIAGO# TEOFISTO DL.

GUINGONA III# RUY ELIAS C.

LOPE9# RODOLFO ,. AGBAYANI

a! TEODORO A. CASIO#

Petitioners,

- !ers"s -

CESAR ". PURISIMA# 4 741

=a0a=42y a1 Se=re2ary o8 F4a=e#GUILLERMO L. PARAYNO# JR.# 4

741 =a0a=42y a1 Comm4114oer o8

I2eral Re>e6e# a! EDUARDO R.

ERMITA# 4 741 =a0a=42y a1 E@e=624>e

Se=re2ary#

Res%on&ents.

' - - - - - - - - - - - - - - - - - - - - - - - - - '

BATAAN GO"ERNOR ENRI,UE T.

GARCIA# JR.

G.R. No. $%&/?'

Petitioner,

- !ers"s -

ON. EDUARDO R. ERMITA# 4 741

=a0a=42y a1 27e E@e=624>e Se=re2ary+

ON. MARGARITO TE"ES# 4 741

=a0a=42y a1 Se=re2ary o8 F4a=e+ON. JOSE MARIO BUNAG# 4 741

=a0a=42y a1 27e OIC Comm4114oer o8

27e B6rea6 o8 I2eral Re>e6e+ a!

ON. ALE*ANDER ARE"ALO# 4

741 =a0a=42y a1 27e OIC Comm4114oer

o8 27e B6rea6 o8 C612om1#

Pro(")*+te&:


6/64

Res%on&ents. Se%te(er , //0

' - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - '

D E C I S I O N

AUSTRIA-MARTINE9#J.

T1e e'%enses o2 *o!ern(ent, 1+!in* 2or t1eir o3e4t t1e interest

o2 +)), s1o")& e orne 5 e!er5one, +n& t1e (ore (+n en3o5s t1e

+&!+nt+*es o2 so4iet5, t1e (ore 1e o"*1t to 1o)& 1i(se)2 1onore& in

4ontri"tin* to t1ose e'%enses.-Anne Roert J+46"es T"r*ot 788-89

;ren41 st+tes(+n +n& e4ono(ist

Mo"ntin* "&*et &e2i4it, re!en"e *ener+tion, in+&e6"+te 2is4+) +))o4+tion 2or

e&"4+tion, in4re+se& e(o)"(ents 2or 1e+)t1 0/.
http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn1http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn1


7/64

House Bill No. 3555@


8/64

On M+5 ?, //0, t1e enro))e& 4o%5 o2 t1e 4onso)i&+te& $o"se +n& Sen+te

!ersion ??8. @01en s+i& &+te 4+(e,

t1e #o"rt iss"e& + te(%or+r5 restr+inin* or&er, e22e4ti!e i((e&i+te)5 +n&

4ontin"in* "nti) 2"rt1er or&ers, en3oinin* res%on&ents 2ro( en2or4in* +n&

i(%)e(entin* t1e )+


9/64

J. PANGANIBAN : . . . (iti*+tin* (e+s"res . . .

ATTY. BANIQUED : Yes, Yo"r $onor.

J. PANGANIBAN : As + (+tter o2 2+4t + %+rt o2 t1e (iti*+tin* (e+s"res


10/64

ATTY. BANIQUED : Yes, Yo"r $onor.

J. PANGANIBAN : A)ri*1t. So t1+ts one re+son


11/64

G.R. No. $%&'/

On J"ne >, //0, Sen. A6"i)ino Q. Pi(ente), Jr., et al., 2i)e& + %etition

2or certiorari)i=e


12/64

Section , +(en&in* Se4tion / 7B o2 t1e NIR#, i(%osin* + 8/ )i(it on t1e

+(o"nt o2 in%"t t+' to e 4re&ite& +*+inst t1e o"t%"t t+' +n&

? Section !", +(en&in* Se4tion C 74 o2 t1e NIR#, +"t1oriin* t1e

Go!ern(ent or +n5 o2 its %o)iti4+) s"&i!isions, instr"(ent+)ities or

+*en4ies, in4)"&in* GO##s, to &e&"4t + 0 2in+)


13/64

G.R. No. $%&;%?

Se!er+) (e(ers o2 t1e $o"se o2 Re%resent+ti!es )e& 5 Re%. ;r+n4is

Jose%1 G. Es4"&ero 2i)e& t1is %etition 2orcertiorarion J"ne ?/, //0. T1e5

6"estion t1e 4onstit"tion+)it5 o2 R.A. No. >??8 on t1e 2o))o, , 0,@8C9, 0, ?, ?8 +n& 99,


14/64

Re)5in* on t1e 4+se o2 #olentino vs. Secretary o$ %inance, ?0 S#RA

?/ 7>>C, res%on&ents +r*"e t1+t t1e %ro4e&"r+) iss"es r+ise& 5 %etitioners, i.e.,

)e*+)it5 o2 t1e i4+(er+) %ro4ee&in*s, e'4)"si!e ori*in+tion o2 re!en"e (e+s"res

+n& t1e %o


15/64

. 1et1er Se4tions C, 0 +n& o2 R.A. No. >??8, +(en&in* Se4tions /, /8 +n&

/9 o2 t1e NIR#, !io)+te t1e 2o))o89, t1e s5ste(


16/64

+*+inst or s"tr+4t 2ro( t1e VAT 41+r*e& on its s+)es or o"t%"ts t1e VAT %+i& on its

%"r41+ses, in%"ts +n& i(%orts.@C

It 98, ??8, +)so re2erre&

to 5 res%on&ents +s t1e VAT Re2or( A4t.

T1e #o"rt ??8

De)etin* entire)5 t1e no pass-on%ro!isions 2o"n& in ot1 t1e $o"se +n& Sen+te

i))s

? Insertin* t1e %ro!ision i(%osin* + 8/ )i(it on t1e +(o"nt o2 in%"t t+' to e4re&ite& +*+inst t1e o"t%"t t+' +n&
http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn14http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn15http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn16http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn17http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn18http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn14http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn15http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn16http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn17http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn18


17/64

C In4)"&in* t1e +(en&(ents intro&"4e& on)5 5 Sen+te Bi)) No. >0/ re*+r&in*

ot1er =in&s o2 t+'es in +&&ition to t1e !+)"e-+&&e& t+'.

Petitioners no< esee41 t1e #o"rt to &e2ine t1e %o


18/64

R")e II, Se4tion ?0 o2 t1e R")es o2 t1e Sen+te st+tes:

Se4. ?0. In t1e e!ent t1+t t1e Sen+te &oes not +*ree


19/64

enro))e& 4o%5 o2 t1e i)). Ass+i)e& in s+i& 4+se ary45 8orm1 o8

e@0re114o# all !ey 2o 27e =o6r21 27e 0oer 2o 464re 42o

alle5a24o1 27a2# 4 ea=245 a la# a o61e o8 Co5re11 8a4le!

2o =om0ly 427 421 o r6le1# 4 27e a31e=e o8 17o45 27a2

27ere a1 a >4ola24o o8 a =o1242624oal 0ro>414o or 27e r45721

o8 0r4>a2e 4!4>4!6al1.In Os&ea v. Pendatun, it a=e# 27e =o6r21 7a>e o =o=er. T7ey may 3e a4>e!

or !41re5ar!e! 3y 27e le541la24>e 3o!y. Co1e6e2ly# mere

8a4l6re 2o =o8orm 2o 0arl4ame2ary 61a5e 4ll o2 4>al4!a2e

27e a=24o (2aHe 3y a !el43era24>e 3o!y) 7e 27e re64142e


20/64

6m3er o8 mem3er1 7a>e a5ree! 2o a 0ar24=6lar mea16re.@7E(%1+sis s"%%)ie&

T1e 2ore*oin* &e4)+r+tion is e'+4t)5 in %oint >C or (ore t1+n ten 5e+rs +*o, in t1e 4+se

o2 #olentino vs. Secretary o$ %inance,@?t1e #o"rt +)re+&5 (+&e t1e

%rono"n4e(ent t1+t 48 a =7a5e 41 !e14re! 4 27e 0ra=24=e o8 27e B4=ameral

Co8ere=e Comm422ee 42 m612 3e 1o6572 4 Co5re11 14=e 2741 6e124o 41

o2 =o>ere! 3y ay =o1242624oal 0ro>414o 362 41 oly a 42eral r6le o8 ea=7

7o61e. @CTo &+te, #on*ress 1+s not seen it 2it to (+=e s"41 41+n*es +&!erte& to 5

t1e #o"rt. It see(s, t1ere2ore, t1+t #on*ress 2in&s t1e %r+4ti4es o2 t1e i4+(er+)

4on2eren4e 4o((ittee to e !er5 "se2") 2or %"r%oses o2 %ro(%t +n& e22i4ient

)e*is)+ti!e +4tion.

Ne!ert1e)ess, 3"st to %"t (in&s +t e+se t1+t no )+t+nt irre*")+rities t+inte&

t1e %ro4ee&in*s o2 t1e i4+(er+) 4on2eren4e 4o((ittees, t1e #o"rt &ee(s it

ne4ess+r5 to &


21/64

?000 +n& ?8/0 on one 1+n&, +n& Sen+te Bi)) No. >0/ on t1e ot1er, re!e+)s t1+t

t1ere


22/64

en&-"sers. VAT s1+)) e

+sore& 5 *ener+tion,

tr+ns(ission, +n& &istri"tion4o(%+nies.

With regard to 70$ li%it on in#ut ta& 'redit

Pro!i&es t1+t t1e in%"t

t+' 4re&it 2or 4+%it+)*oo&s on


23/64

+n& t1e VAT i(%ose& on s+)e o2 %etro)e"( %ro&"4ts s1o")& not e %+sse& on to

4ons"(ers, +s %ro%ose& in t1e $o"se i)) 7? in


24/64

41ose to sett)e s"41 &is+*ree(ent 5 +)to*et1er &e)etin* 2ro( its Re%ort +n5 no

pass-on%ro!ision.

?. it1 re*+r& to t1e &is+*ree(ent on


25/64

C. it1 re*+r& to t1e +(en&(ents to ot1er %ro!isions o2 t1e NIR# on

4or%or+te in4o(e t+', 2r+n41ise, %er4ent+*e +n& e'4ise t+'es, t1e 4on2eren4e

4o((ittee &e4i&e& to in4)"&e s"41 +(en&(ents +n& +si4+))5 +&o%te& t1e

%ro!isions 2o"n& in Sen+te Bi)) No. >0/,


26/64

R+)%1 Re4to, #1+ir(+n o2 t1e Sen+te P+ne), e'%)+ine& t1e re+son 2or &e)etin*

t1e no pass-on%ro!ision in t1is


27/64

to it 2or re4on4i)i+tion. S"41 ein* t1e 4+se, t1e #o"rt &oes not see +n5 *r+!e +"se

o2 &is4retion +(o"ntin* to )+4= or e'4ess o2 3"ris&i4tion 4o((itte& 5 t1e

Bi4+(er+) #on2eren4e #o((ittee. In t1e e+r)ier 4+ses o2Philippine udes

Association vs. Prado@>+n& #olentino vs. Secretary o$ %inance,@?/t1e #o"rt

re4o*nie& t1e )on*-st+n&in* )e*is)+ti!e %r+4ti4e o2 *i!in* s+i& 4on2eren4e

4o((ittee +(%)e )+tit"&e 2or 4o(%ro(isin* &i22eren4es et


28/64

+(en&(ent r")e 7Se4. 7, Art. VI o2 t1e >98 #onstit"tion, 2+i)s to 4on!in4e

t1e #o"rt to &e!i+te 2ro( its r")in* in t1e #olentino 4+se t1+t:

Nor is t1ere +n5 re+son 2or re6"irin* t1+t t1e #o((ittees Re%ort in t1ese

4+ses ("st 1+!e "n&er*one t1ree re+&in*s in e+41 o2 t1e te 7o61e1# 3e8ore 1a4! 34ll 41 2ra1m422e! 2o 27e

o27er 7o61e 8or 421 =o=6rre=e or ame!me2. Veri)5, to 4onstr"e s+i& %ro!ision

in +


29/64

97B7 Inter-4or%or+te Di!i&en&s

?C7B7 Inter-4or%or+te Di!i&en&s

T+' on Persons E'e(%t 2ro( VAT

8 Per4ent+*e T+' on &o(esti4 4+rriers +n& =ee%ers o2

G+r+*e

> T+' on 2r+n41ises

T+' on +n=s +n& Non-B+n= ;in+n4i+)

Inter(e&i+ries

C9 E'4ise T+' on (+n"2+4t"re& oi)s +n& ot1er 2"e)s

0 E'4ise T+' on (iner+) %ro&"4ts

? Re*istr+tion re6"ire(ents

?8 Iss"+n4e o2 re4ei%ts or s+)es or 4o((er4i+)in!oi4es

99 Dis%osition o2 In4re(ent+) Re!en"e

Petitioners 4)+i( t1+t t1e +(en&(ents to t1ese %ro!isions o2 t1e NIR# &i&

not +t +)) ori*in+te 2ro( t1e $o"se. T1e5 +!er t1+t $o"se Bi)) No. ?000 %ro%ose&

+(en&(ents on)5 re*+r&in* Se4tions /, /8, /9, / +n& C o2 t1e NIR#,


30/64

In t1e %resent 4+ses, %etitioners +&(it t1+t it e# 27e# 27e 0oer o8 27e Sea2e 2o 0ro0o1e ame!me21# 27e

Sea2e =a 0ro0o1e 421 o >er14o e>e 427 re10e=2 2o 34ll1 74=7 are

re64re! 3y 27e Co1242624o 2o or454a2e 4 27e o61e.

. . .

In&ee&,


31/64

a00roa=7 27e 1ame 0ro3lem1 8rom 27e a24oal 0er10e=24>e. Bo27 >4e1 are

27ere3y ma!e 2o 3ear o 27e ea=2me2 o8 16=7 la1.@??7E(%1+sis s"%%)ie&

Sin4e t1ere is no 6"estion t1+t t1e re!en"e i)) e'4)"si!e)5 ori*in+te& in t1e

$o"se o2 Re%resent+ti!es, t1e Sen+te e6e mea16re1 27a2 4=l6!e mea16re1 2o

4m0ro>e 2a@ a!m4412ra24o a! =o2rol 27e leaHa5e1 4 re>e6e1 8rom

4=ome 2a@e1 a! 27e >al6e-a!!e! 2a@ ("AT). 7E(%1+sis s"%%)ie&

Re%. Eri4 D. Sin*son, in 1is s%onsors1i% s%ee41 2or $o"se Bi)) No. ?000,

&e4)+re& t1+t:

In t1e "&*et (ess+*e o2 o"r Presi&ent in t1e 5e+r //0, s1e reiter+te& t1+t

, e ee! 2o 1e4e
http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn33http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn33


32/64

4!o1 o8 o00or26424e1 74=7 m4572 1eem 0o45a2 4 27e 3e5445# 362 4

27e lo5 r6 0ro>e e88e=24>e a! 3ee84=4al 2o 27e o>erall 12a261 o8 o6r

e=oomy. Oe 16=7 o00or2642y 41 a re>4e o8 e@41245 2a@ ra2e1# e>al6a245

27e rele>a=e 54>e o6r 0re1e2 =o!424o1.@?C7E(%1+sis s"%%)ie&

Not+)5 t1ere2ore, t1e (+in %"r%ose o2 t1e i))s e(+n+tin* 2ro( t1e $o"se

o2 Re%resent+ti!es is to rin* in sie+)e re!en"es 2or t1e *o!ern(ent

to s"%%)e(ent o"r 4o"ntr5s serio"s 2in+n4i+) %ro)e(s, +n& i(%ro!e t+'

+&(inistr+tion +n& 4ontro) o2 t1e )e+=+*es in re!en"es 2ro( in4o(e t+'es +n&

!+)"e-+&&e& t+'es. As t1ese 1o"se i))s


33/64

e4+"se t1ere is + )i*1t +t t1e en& o2 t1e t"nne), t1is *o!ern(ent


34/64

T1e ot1er se4tions +(en&e& 5 t1e Sen+te %ert+ine& to (+tters o2 t+'

+&(inistr+tion


35/64

so)&, +rtere& or e'41+n*e&, s"41 t+' to e %+i& 5 t1e se))er or

tr+ns2eror: 0ro>4!e!# 27a227e Pre14!e2# 60o 27e

re=omme!a24o o8 27e Se=re2ary o8 F4a=e# 17all# e88e=24>e

Ja6ary $# ''%# ra41e 27e ra2e o8 >al6e-a!!e! 2a@ 2o 2el>e

0er=e2 ($)# a82er ay o8 27e 8ollo45 =o!424o1 7a1 3ee

1a24184e!.

(4) >al6e-a!!e! 2a@ =olle=24o a1 a 0er=e2a5e o8 Gro11

Dome124= Pro!6=2 (GDP) o8 27e 0re>4o61 year e@=ee!1

2o a! 8o6r-84827 0er=e2 ( ;) or

(44) a24oal 5o>erme2 !e84=42 a1 a 0er=e2a5e o8 GDP o8 27e

0re>4o61 year e@=ee!1 oe a! oe-7al8 0er=e2 ($ ).

SE#. 0. Se4tion /8 o2 t1e s+(e #o&e, +s +(en&e&, is 1ere5 2"rt1er

+(en&e& to re+& +s 2o))o


36/64

7A R+te +n& B+se o2 T+'. T1ere s1+)) e )e!ie&, +ssesse& +n&

4o))e4te&, + !+)"e-+&&e& t+' e6"i!+)ent to ten %er4ent 7/ o2

*ross re4ei%ts &eri!e& 2ro( t1e s+)e or e'41+n*e o2ser!i4es: 0ro>4!e!# 27a2 27e Pre14!e2# 60o 27ere=omme!a24o o8 27e Se=re2ary o8 F4a=e# 17all# e88e=24>e

Ja6ary $# ''%# ra41e 27e ra2e o8 >al6e-a!!e! 2a@ 2o 2el>e0er=e2 ($)# a82er ay o8 27e 8ollo45 =o!424o1 7a1 3ee

1a24184e!.

(4) >al6e-a!!e! 2a@ =olle=24o a1 a 0er=e2a5e o8 Gro11

Dome124= Pro!6=2 (GDP) o8 27e 0re>4o61 year e@=ee!1

2o a! 8o6r-84827 0er=e2 ( ;) or

(44) a24oal 5o>erme2 !e84=42 a1 a 0er=e2a5e o8 GDP o8 27e

0re>4o61 year e@=ee!1 oe a! oe-7al8 0er=e2 ($

). 7E(%1+sis s"%%)ie&

Petitioners +))e*e t1+t t1e *r+nt o2 t1estand-by authorityto t1e Presi&ent to

in4re+se t1e VAT r+te is + !irt"+) +&i4+tion 5 #on*ress o2 its e'4)"si!e %o


37/64

%o


38/64

it1 res%e4t to t1e Le*is)+t"re, Se4tion o2 Arti4)e VI o2 t1e #onstit"tion

%ro!i&es t1+t the 7eislative po8er shall be vested in the 'onress o$

the Philippines 8hich shall consist o$ a Senate and a 9ouse o$ Representatives.

T1e %o


39/64

in&i4+tes t1e 4ir4"(st+n4es "n&er e1 a !41=re24o a1 2o 7a2 42

17all 3e# a! =o8err45 a a627or42y or !41=re24o a1 2o 421 e@e=624o# 2o 3e

e@er=41e! 6!er a! 4 06r16a=e o8 27e la. T7e 84r12 =ao2 3e !oe+ 2o 27e

la22er o >al4! o3e=24o =a 3e ma!e.

. . .

It is 4onten&e&, 1oe 4 a1=er2a445 27e e@412e=e o8 8a=21 or =o!424o1 a1 27e

3a141 o8 27e 2aH45 42o e88e=2 o8 a la. T7a2 41 a me2al 0ro=e11 =ommo 2o all

3ra=7e1 o8 27e 5o>erme2.Not


40/64

!e2erm4e! 3y 27e le541la26re. I o27er or!1# 27e le541la26re# a1 42 41 421 !62y

2o !o# !e2erm4e1 27a2# 6!er 54>e =4r=6m12a=e1# =er2a4 e@e=624>e or

a!m4412ra24>e a=24o 41 2o 3e 2aHe# a! 27a2# 6!er o27er =4r=6m12a=e1#

!488ere2 or o a=24o a2 all 41 2o 3e 2aHe. :7a2 41 2761 le82 2o 27e

a!m4412ra24>e o884=4al 41 o2 27e le541la24>e !e2erm4a24o o8 7a2 063l4=

0ol4=y !ema!1# 362 14m0ly 27e a1=er2a4me2 o8 7a2 27e 8a=21 o8 27e =a1ere64re 2o 3e !oe a==or!45 2o 27e 2erm1 o8 27e la 3y 74=7 7e 41 5o>ere!.

T7e e884=4e=y o8 a A=2 a1 a !e=lara24o o8 le541la24>e 4ll m612# o8 =o6r1e#

=ome 8rom Co5re11# 362 27e a1=er2a4me2 o8 27e =o245e=y 60o 74=7

27e A=2 17all 2aHe e88e=2 may 3e le82 2o 16=7 a5e=4e1 a1 42 may !e145a2e. T7e

le541la26re# 27e# may 0ro>4!e 27a2 a la 17all 2aHe e88e=2 60o 27e 7a00e45

o8 8626re 10e=484e! =o245e=4e1 lea>45 2o 1ome o27er 0er1o or 3o!y 27e

0oer 2o !e2erm4e 7e 27e 10e=484e! =o245e=y 7a1 ar41e.7E(%1+siss"%%)ie&.@C

In(du vs. (ricta,@C8t1e #o"rt reiter+te&:

1+t 4+nnot e &e)e*+te& is t1e +"t1orit5 "n&er t1e #onstit"tion to (+=e

)+1i)e t1e %o


41/64

e )e2t to t1e(, in4)"&in* t1e %o


42/64

+&(inistr+tion o2 t1e in4re+se r+te "n&er t1e )+< is 4ontin*ent. T1e )e*is)+t"re 1+s

(+&e t1e o%er+tion o2 t1e r+te e22e4ti!e J+n"+r5 , //, 4ontin*ent "%on +

s%e4i2ie& 2+4t or 4on&ition. It )e+!es t1e entire o%er+tion or non-o%er+tion o2 t1e

r+te "%on 2+4t"+) (+tters o"tsi&e o2 t1e 4ontro) o2 t1e e'e4"ti!e.

No &is4retion


43/64

1en one s%e+=s o2 t1e Se4ret+r5 o2 ;in+n4e +s t1e +)ter e*o o2 t1e

Presi&ent, it si(%)5 (e+ns t1+t +s 1e+& o2 t1e De%+rt(ent o2 ;in+n4e 1e is t1e

+ssist+nt +n& +*ent o2 t1e #1ie2 E'e4"ti!e. T1e (")ti2+rio"s e'e4"ti!e +n&

+&(inistr+ti!e 2"n4tions o2 t1e #1ie2 E'e4"ti!e +re %er2or(e& 5 +n& t1ro"*1 t1e

e'e4"ti!e &e%+rt(ents, +n& t1e +4ts o2 t1e se4ret+ries o2 s"41 &e%+rt(ents, s"41 +s

t1e De%+rt(ent o2 ;in+n4e, %er2or(e& +n& %ro(")*+te& in t1e re*")+r 4o"rse o2

"siness, +re, "n)ess &is+%%ro!e& or re%ro+te& 5 t1e #1ie2 E'e4"ti!e,

%res"(%ti!e)5 t1e +4ts o2 t1e #1ie2 E'e4"ti!e.T1e Se4ret+r5 o2 ;in+n4e, +s s"41,

o44"%ies + %o)iti4+) %osition +n& 1o)&s o22i4e in +n +&!isor5 4+%+4it5, +n&, in t1e

)+n*"+*e o2 T1o(+s Je22erson, s1o")& e o2 t1e Presi&entKs oso( 4on2i&en4e

+n&, in t1e )+n*"+*e o2 Attorne5-Gener+) #"s1in*, is s"3e4t to t1e &ire4tion o2 t1ePresi&ent.@00

In t1e %resent 4+se, in (+=in* 1is re4o((en&+tion to t1e Presi&ent on t1e

e'isten4e o2 eit1er o2 t1e t


44/64

#on*ress si(%)5 *r+nte& t1e Se4ret+r5 o2 ;in+n4e t1e +"t1orit5 to +s4ert+in

t1e e'isten4e o2 + 2+4t, n+(e)5,


45/64

B. #he !": 2ncrease *A# Rate Does ot 2&pose an

Un$air and Unnecessary Additional #a) Burden

Petitioners Pi(ente),et al. +r*"e t1+t t1e in4re+se in t1e VAT r+te

i(%oses +n "n2+ir +n& +&&ition+) t+' "r&en on t1e %eo%)e. Petitioners +)so +r*"e

t1+t t1e in4re+se, &e%en&ent on +n5 o2 t1e 4on&itions set 2ort1 in t1e

4onteste& %ro!isions, is +(i*"o"s e4+"se it &oes not st+te i2 t1e VAT r+te ??8, i2 +n5

o2 t1e t


46/64

4o"rtKs see=in* t1e )e*is)+ti!e intent, t1e )+< ("st e t+=en +s it is, &e!oi& o2

3"&i4i+) +&&ition or s"tr+4tion.@

Petitioners +)so 4onten& t1+t t1e in4re+se in t1e VAT r+te,


47/64

T1e %rin4i%)e o2 2is4+) +&e6"+45 +s + 41+r+4teristi4 o2 + so"n& t+' s5ste(

/ *oes to &et

ser!i4e. T1+ts interest %)"s +(orti+tion o2 o"r &et. So 4)e+r)5, t1is is not +

s"st+in+)e sit"+tion. T1+ts t1e 2irst 2+4t.

T1e se4on& 2+4t is t1+t o"r &et to GDP )e!e) is


48/64

)o


49/64

1et1er Se4tion 9 o2 R.A. No. >??8, +(en&in* Se4tions /7A7 +n& /7B o2

t1e NIR# +n& Se4tion o2 R.A. No. >??8, +(en&in* Se4tion C7# o2 t1e

NIR#, !io)+te t1e 2o))o??8, +(en&in* Se4tions / 7A7, / 7B, +n& Se4tion

o2 R.A. No. >??8, +(en&in* Se4tion C 7# o2 t1e NIR# +re +ritr+r5,o%%ressi!e, e'4essi!e +n& 4on2is4+tor5. T1eir +r*"(ent is %re(ise& on t1e

4onstit"tion+) ri*1t +*+inst &e%ri!+tion o2 )i2e, )iert5 o2 %ro%ert5


50/64

t1e !+)"e-+&&e& t+' due on t1e s+)e or )e+se o2 t+'+)e *oo&s or %ro%erties or

ser!i4es 5 +n5 %erson re*istere& or re6"ire& to re*ister "n&er t1e )+


51/64

On t1e ot1er 1+n&, it +%%e+rs t1+t %etitioner G+r4i+ 2+i)e& to 4o(%re1en& t1e

o%er+tion o2 t1e 8/ )i(it+tion on t1e in%"t t+'. A44or&in* to %etitioner, t1e

)i(it+tion on t1e 4re&it+)e in%"t t+' in e22e4t +))o??8 1o


52/64

is 2or t1e %ersonHt+'%+5er to +%%)5 or 4re&it t1ese in%"t t+'es, +s e!i&en4e& 5

re4ei%ts, +*+inst 1is o"t%"t t+'es.

Petitioners Asso4i+tion o2PilipinasS1e)) De+)ers, In4.,et al.+)so +r*"e t1+t

t1e in%"t t+' %+rt+=es t1e n+t"re o2 + %ro%ert5 t1+t (+5 not e 4on2is4+te&,

+%%ro%ri+te&, or )i(ite& 8

7R.A. No. 9CC.@80T1e ri*1t to 4re&it in%"t t+' +s +*+inst t1e o"t%"t t+' is 4)e+r)5

+ %ri!i)e*e 4re+te& 5 )+


53/64

Provided, T1+t t1e in%"t t+' on *oo&s %"r41+se& or i(%orte& in + 4+)en&+r (ont1

2or "se in tr+&e or "siness 2or ??8,


54/64

7# it11o)&in* o2 V+)"e-+&&e& T+'. T1e Go!ern(ent or +n5 o2 its

%o)iti4+) s"&i!isions, instr"(ent+)ities or +*en4ies, in4)"&in* *o!ern(ent-o9, i(%)e(entin* R.A. No. 9CC 7T1e T+'

Re2or( A4t o2 >>8, t1e 4on4e%t o2 2in+)


55/64

SE#TION .08. it11o)&in* o2 T+' +t So"r4e

7A ;in+) it11o)&in* T+'. Un&er t1e 2in+)

T1e #o"rt nee& not e'%)ore t1e r+tion+)e e1in& t1e %ro!ision. It is 4)e+r t1+t

#on*ress inten&e& to tre+t &i22erent)5 t+'+)e tr+ns+4tions


56/64

inst+))(ent %+5(ent al6e-a!!e! 2a@l4a34l42y o8 27e 1eller or =o2ra=2or: Pro!i&e&, 1o


57/64

%oint


58/64

T1e e6"+) %rote4tion 4)+"se &oes not re6"ire t1e "ni!ers+) +%%)i4+tion o2 t1e

)+


59/64

In t1is 4+se, t1e t+' )+< is "ni2or( +s it %ro!i&es + st+n&+r& r+te o2 / or

/ 7or on +)) *oo&s +n& ser!i4es. Se4tions C, 0 +n& o2 R.A. No. >??8,

+(en&in* Se4tions /, /8 +n& /9, res%e4ti!e)5, o2 t1e NIR#, %ro!i&e 2or + r+te

o2 / 7or on s+)e o2 *oo&s +n& %ro%erties, i(%ort+tion o2 *oo&s, +n& s+)e o2

ser!i4es +n& "se or )e+se o2 %ro%erties. T1ese s+(e se4tions +)so %ro!i&e 2or + /

r+te on 4ert+in s+)es +n& tr+ns+4tion.

Neit1er &oes t1e )+< (+=e +n5 &istin4tion +s to t1e t5%e o2 in&"str5 or tr+&e

t1+t


60/64

Se4tion />7!, i.e., tr+ns+4tions +n& n+t"r+) *+s@>C

Asi&e 2ro( t1ese, #on*ress +)so in4re+se& t1e in4o(e t+' r+tes o2

4or%or+tions, in or&er to &istri"te t1e "r&en o2 t+'+tion. Do(esti4, 2orei*n, +n&

non-resi&ent 4or%or+tions +re no< s"3e4t to + ?0 in4o(e t+' r+te, 2ro( +

%re!io"s ?.@>0Inter4or%or+te &i!i&en&s o2 non-resi&ent 2orei*n 4or%or+tions +re

sti)) s"3e4t to 0 2in+)


61/64

I. T1e s"3e4ts o2 e!er5 st+te o"*1t to 4ontri"te to88 In&ee&, t1e(+n&+te to #on*ress is not to %res4rie, "t to e!o)!e, + %ro*ressi!e t+' s5ste(.

Ot1er


62/64

4ert+in tr+ns+4tions 7R.A. No. 88, ?, +(en&in* / 7 o2 t1e NIR#, ??8.

$ERE;ORE, Re%")i4 A4t No. >??8 not ein* "n4onstit"tion+), t1e

%etitions in G.R. Nos. 9/0, 9/8, 9C, 9C?, +n& 98?/, +re

1ere5 DISMISSED.
http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn99http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn100http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn101http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn99http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn100http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn101


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T1ere ein* no 4onstit"tion+) i(%e&i(ent to t1e 2")) en2or4e(ent +n&

i(%)e(ent+tion o2 R.A. No. >??8, t1e te(%or+r5 restr+inin* or&er iss"e& 5 t1e

#o"rt on J")5 , //0 is LIFTED "%on 2in+)it5 o2 1erein &e4ision.

SO ORDERED.

MA. ALICIA AUSTRIA-MARTINE9

Asso4i+te J"sti4e

E #ON#UR:

ILARIO G. DA"IDE# JR.

#1ie2 J"sti4e

REYNATO S. PUNO

Asso4i+te J"sti4e

ARTEMIO ". PANGANIBAN

Asso4i+te J"sti4e

LEONARDO A. ,UISUMBING

Asso4i+te J"sti4e

CONSUELO YNARES-SANTIAGO

Asso4i+te J"sti4e


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ANGELINA SANDO"AL-GUTIERRE9

Asso4i+te J"sti4e

ANTONIO T. CARPIO

Asso4i+te J"sti4e

RENATO C. CORONA

Asso4i+te J"sti4e

CONCITA CARPIO-MORALES

Asso4i+te J"sti4e

Abakada v Exec Sec

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