EN BANC

ABAKADA GURO PARTY LIST

(Formerly AASJAS) OFFICERS
SAMSON 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.
T)E )ONORABLE E*ECUTI"E
SECRETARY EDUARDO ERMITA+
)ONORABLE SECRETARY OF
T)E DEPARTMENT OF FINANCE
CESAR PURISIMA+ a!
)ONORABLE COMMISSIONER
OF INTERNAL RE"ENUE
GUILLERMO PARAYNO# JR.#

Res%on&ents.

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A,UILINO ,. PIMENTEL# JR.#
LUISA P. EJERCITO-ESTRADA#
G.R. No. $%&.'/
JINGGOY E. ESTRADA# PANFILO
M. LACSON# ALFREDO S. LIM#
JAMBY A.S. MADRIGAL# AND
SERGIO R. OSME0A III#
Petitioners,

- !ers"s -

E*ECUTI"E SECRETARY
EDUARDO R. ERMITA# CESAR ".
PURISIMA# SECRETARY OF
FINANCE# GUILLERMO L.
PARAYNO# JR.# COMMISSIONER
OF T)E BUREAU OF INTERNAL
RE"ENUE#

Res%on&ents.

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ASSOCIATION OF PILIPINAS
S)ELL DEALERS# INC. re1re2e3e!
4y 532 Pre25!e3# ROSARIO
ANTONIO+ PETRON DEALERS6
ASSOCIATION re1re2e3e! 4y 532
Pre25!e3# RUT) E. BARBIBI+
ASSOCIATION OF CALTE*
DEALERS6 OF T)E P)ILIPPINES
re1re2e3e! 4y 532 Pre25!e3#
MERCEDITAS A. GARCIA+
ROSARIO ANTONIO !o57 4825e22
8!er 39e ame a! 23yle o: ;ANB
NORT) S)ELL SER"ICE
STATION<+ LOURDES MARTINE=
!o57 4825e22 8!er 39e ame a!
23yle o: ;S)ELL GATE > N.
DOMINGO<+ BET)=AIDA TAN
!o57 4825e22 8!er 39e ame a!
23yle o: ;AD"ANCE S)ELL
STATION<+ REYNALDO P.
MONTOYA !o57 4825e22 8!er 39e
G.R. No. $%&?%$
ame a! 23yle o: ;NE@ LAMUAN
S)ELL SER"ICE STATION<+
EFREN SOTTO !o57 4825e22 8!er
39e ame a! 23yle o: ;RED FIELD
S)ELL SER"ICE STATION<+
DONICA CORPORATION
re1re2e3e! 4y 532 Pre25!e3# DESI
TOMACRU=+ RUT) E. MARBIBI
!o57 4825e22 8!er 39e ame a!
23yle o: ;RAR PETRON STATION<+
PETER M. UNGSON !o57 4825e22
8!er 39e ame a! 23yle o:
;CLASSIC STAR GASOLINE
SER"ICE STATION<+ MARIAN
S)EILA A. LEE !o57 4825e22
8!er 39e ame a! 23yle o: ;NTE
GASOLINE A SER"ICE
STATION<+ JULIAN CESAR P.
POSADAS !o57 4825e22 8!er 39e
ame a! 23yle o: ;STARCARGA
ENTERPRISES<+ ADORACION
MA0EBO !o57 4825e22 8!er 39e
ame a! 23yle o: ;CMA
MOTORISTS CENTER<+ SUSAN M.
ENTRATA !o57 4825e22 8!er 39e
ame a! 23yle o: ;LEONA6S
GASOLINE STATION a!
SER"ICE CENTER<+ CARMELITA
BALDONADO !o57 4825e22 8!er
39e ame a! 23yle o: ;FIRST
C)OICE SER"ICE CENTER<+
MERCEDITAS A. GARCIA !o57
4825e22 8!er 39e ame a! 23yle o:
;LORPED SER"ICE CENTER<+
R)EAMAR A. RAMOS !o57
4825e22 8!er 39e ame a! 23yle o:
;RJRAM PTT GAS STATION<+ MA.
ISABEL "IOLAGO !o57 4825e22
8!er 39e ame a! 23yle o:
;"IOLAGO-PTT SER"ICE
CENTER<+ MOTORISTS6 )EART
CORPORATION re1re2e3e! 4y 532
"5Be-Pre25!e3 :or O1era35o2#
JOSELITO F. FLORDELI=A+
MOTORISTS6 )AR"ARD
CORPORATION re1re2e3e! 4y 532
"5Be-Pre25!e3 :or O1era35o2#
JOSELITO F. FLORDELI=A+
MOTORISTS6 )ERITAGE
CORPORATION re1re2e3e! 4y 532
"5Be-Pre25!e3 :or O1era35o2#
JOSELITO F. FLORDELI=A+
P)ILIPPINE STANDARD OIL
CORPORATION re1re2e3e! 4y 532
"5Be-Pre25!e3 :or O1era35o2#
JOSELITO F. FLORDELI=A+
ROMEO MANUEL !o57 4825e22
8!er 39e ame a! 23yle o:
;ROMMAN GASOLINE STATION<+
ANT)ONY ALBERT CRU= III
!o57 4825e22 8!er 39e ame a!
23yle o: ;TRUE SER"ICE
STATION<#
Petitioners,

- !ers"s -

CESAR ". PURISIMA# 5 952
Ba1aB53y a2 SeBre3ary o: 39e
De1ar3me3 o: F5aBe a!
GUILLERMO L. PARAYNO# JR.# 5
952 Ba1aB53y a2 Comm5225oer o:
I3eral ReCe8e#

Res%on&ents.

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FRANCIS JOSEP) G. ESCUDERO#
"INCENT CRISOLOGO#
EMMANUEL JOEL J.
G.R. No. $%&?%D
"ILLANUE"A# RODOLFO G.
PLA=A# DARLENE ANTONINO-
CUSTODIO# OSCAR G.
MALAPITAN# BENJAMIN C.
AGARAO# JR. JUAN EDGARDO M.
ANGARA# JUSTIN MARC SB.
C)IPECO# FLORENCIO G. NOEL#
MUJI" S. )ATAMAN# RENATO B.
MAGTUBO# JOSEP) A.
SANTIAGO# TEOFISTO DL.
GUINGONA III# RUY ELIAS C.
LOPE=# RODOLFO ,. AGBAYANI
a! TEODORO A. CASI0O#
Petitioners,

- !ers"s -

CESAR ". PURISIMA# 5 952
Ba1aB53y a2 SeBre3ary o: F5aBe#
GUILLERMO L. PARAYNO# JR.# 5
952 Ba1aB53y a2 Comm5225oer o:
I3eral ReCe8e# a! EDUARDO R.
ERMITA# 5 952 Ba1aB53y a2 EEeB835Ce
SeBre3ary#






Res%on&ents.

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BATAAN GO"ERNOR ENRI,UE T.
GARCIA# JR.
G.R. No. $%&/D'
Petitioner,

- !ers"s -

)ON. EDUARDO R. ERMITA# 5 952
Ba1aB53y a2 39e EEeB835Ce SeBre3ary+
)ON. MARGARITO TE"ES# 5 952
Ba1aB53y a2 SeBre3ary o: F5aBe+
)ON. JOSE MARIO BUNAG# 5 952
Ba1aB53y a2 39e OIC Comm5225oer o:






39e B8rea8 o: I3eral ReCe8e+ a!
)ON. ALE*ANDER ARE"ALO# 5
952 Ba1aB53y a2 39e OIC Comm5225oer
o: 39e B8rea8 o: C823om2#


Pro(")*+te&:
Res%on&ents. Se%te(,er -, .//0

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D E C I S I O N


AUSTRIA-MARTINE=# J.F


T1e e'%enses o2 *o!ern(ent, 1+!in* 2or t1eir o,3e4t 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 Ro,ert J+46"es T"r*ot 7-8.8--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 <or=ers, +n&
<i&er 4o!er+*e 2or 2")) !+)"e-+&&e& t+' ,ene2its > t1ese +re t1e re+sons
<15 Re%",)i4 A4t No. ?@@8 7R.A. No. ?@@8:
A-B
<+s en+4te&. Re+sons, t1e
<is&o( o2 <1i41, t1e #o"rt e!en <it1 its e'tensi!e 4onstit"tion+) %o<er o2
re!ie<, 4+nnot %ro,e. T1e %etitioners in t1ese 4+ses, 1o<e!er, 6"estion not
on)5 t1e <is&o( o2 t1e )+<, ,"t +)so %er4ei!e& 4onstit"tion+) in2ir(ities in
its %+ss+*e.

E!er5 )+< en3o5s in its 2+!or t1e %res"(%tion o2 4onstit"tion+)it5.
T1eir +r*"(ents not<it1st+n&in*, %etitioners 2+i)e& to 3"sti25 t1eir 4+)) 2or
t1e in!+)i&it5 o2 t1e )+<. $en4e, R.A. No. ?@@8 is not "n4onstit"tion+).

LEGISLATI"E )ISTORY

R.A. No. ?@@8 is + 4onso)i&+tion o2 t1ree )e*is)+ti!e ,i))s n+(e)5,
$o"se Bi)) Nos. @000 +n& @8/0, +n& Sen+te Bi)) No. -?0/.

House Bill No. 3555
A.B
<+s intro&"4e& on 2irst re+&in* on J+n"+r5 8,
.//0. T1e $o"se #o((ittee on C+5s +n& Me+ns +%%ro!e& t1e ,i)), in
s",stit"tion o2 $o"se Bi)) No. -DE9, <1i41 Re%resent+ti!e 7Re%.: Eri4 D.
Sin*son intro&"4e& on A"*"st 9, .//D. T1e Presi&ent 4erti2ie& t1e ,i)) on
J+n"+r5 8, .//0 2or i((e&i+te en+4t(ent. On J+n"+r5 .8, .//0, t1e $o"se
o2 Re%resent+ti!es +%%ro!e& t1e ,i)) on se4on& +n& t1ir& re+&in*.

House Bill No. 3705
A@B
on t1e ot1er 1+n&, s",stit"te& $o"se Bi)) No.
@-/0 intro&"4e& ,5 Re%. S+)+4ni, ;. B+terin+, +n& $o"se Bi)) No. @@9-
intro&"4e& ,5 Re%. J+4into V. P+r+s. Its F(ot1er ,i))G is $o"se Bi)) No.
@000. T1e $o"se #o((ittee on C+5s +n& Me+ns +%%ro!e& t1e ,i)) on
;e,r"+r5 ., .//0. T1e Presi&ent +)so 4erti2ie& it +s "r*ent on ;e,r"+r5 9,
.//0. T1e $o"se o2 Re%resent+ti!es +%%ro!e& t1e ,i)) on se4on& +n& t1ir&
re+&in* on ;e,r"+r5 .9, .//0.

Me+n<1i)e, t1e Sen+te #o((ittee on C+5s +n& Me+ns +%%ro!e&
Senate Bill No. 1950
ADB
on M+r41 8, .//0, Fin s",stit"tion o2 Sen+te Bi))
Nos. -@@8, -9@9 +n& -98@, t+=in* into 4onsi&er+tion $o"se Bi)) Nos. @000
+n& @8/0.G Sen+tor R+)%1 G. Re4to s%onsore& Sen+te Bi)) No. -@@8, <1i)e
Sen+te Bi)) Nos. -9@9 +n& -98@ <ere ,ot1 s%onsore& ,5 Sens. ;r+n=)in M.
Dri)on, J"+n M. ;)+!ier +n& ;r+n4is N. P+n*i)in+n. T1e Presi&ent 4erti2ie&
t1e ,i)) on M+r41 --, .//0, +n& <+s +%%ro!e& ,5 t1e Sen+te on se4on& +n&
t1ir& re+&in* on A%ri) -@, .//0.

On t1e s+(e &+te, A%ri) -@, .//0, t1e Sen+te +*ree& to t1e re6"est o2
t1e $o"se o2 Re%resent+ti!es 2or + 4o((ittee 4on2eren4e on t1e &is+*reein*
%ro!isions o2 t1e %ro%ose& ,i))s.

Be2ore )on*, t1e #on2eren4e #o((ittee on t1e Dis+*reein*
Pro!isions o2 $o"se Bi)) No. @000, $o"se Bi)) No. @8/0, +n& Sen+te Bi))
No. -?0/, F+2ter 1+!in* (et +n& &is4"sse& in 2")) 2ree +n& 4on2eren4e,G
re4o((en&e& t1e +%%ro!+) o2 its re%ort, <1i41 t1e Sen+te &i& on M+5 -/,
.//0, +n& <it1 t1e $o"se o2 Re%resent+ti!es +*reein* t1ereto t1e ne't &+5,
M+5 --, .//0.

On M+5 .@, .//0, t1e enro))e& 4o%5 o2 t1e 4onso)i&+te& $o"se +n&
Sen+te !ersion <+s tr+ns(itte& to t1e Presi&ent, <1o si*ne& t1e s+(e into
)+< on M+5 .D, .//0. T1"s, 4+(e R.A. No. ?@@8.

J")5 -, .//0 is t1e e22e4ti!it5 &+te o2 R.A. No. ?@@8.
A0B
C1en 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 )+<.

Or+) +r*"(ents <ere 1e)& on J")5 -D, .//0. Si*ni2i4+nt)5, &"rin* t1e
1e+rin*, t1e #o"rt s%e+=in* t1ro"*1 Mr. J"sti4e Arte(io V. P+n*+ni,+n,
!oi4e& t1e r+tion+)e 2or its iss"+n4e o2 t1e te(%or+r5 restr+inin* or&er on
J")5 -, .//0, to <it:
J. PANGANIBAN : . . . B"t ,e2ore I *o into t1e &et+i)s o2 5o"r
%resent+tion, )et (e 3"st te)) 5o" + )itt)e
,+4=*ro"n&. Yo" =no< <1en t1e )+< too= e22e4t on
J")5 -, .//0, t1e #o"rt iss"e& + TRO +t +,o"t 0
oH4)o4= in t1e +2ternoon. B"t ,e2ore t1+t, t1ere <+s
+ )ot o2 4o(%)+ints +ire& on te)e!ision +n& on r+&io.
So(e %eo%)e in + *+s st+tion <ere 4o(%)+inin* t1+t
t1e *+s %ri4es <ent "% ,5 -/I. So(e %eo%)e <ere
4o(%)+inin* t1+t t1eir e)e4tri4 ,i)) <i)) *o "% ,5
-/I. Ot1er ti(es %eo%)e ri&in* in &o(esti4 +ir
4+rrier <ere 4o(%)+inin* t1+t t1e %ri4es t1+t t1e5H))
1+!e to %+5 <o")& 1+!e to *o "% ,5 -/I. C1i)e +))
t1+t <+s ,ein* +ire&, %er 5o"r %resent+tion +n& %er
o"r o<n "n&erst+n&in* o2 t1e )+<, t1+tHs not tr"e.
ItHs not tr"e t1+t t1e e-!+t )+< ne4ess+ri)5 in4re+se&
%ri4es ,5 -/I "ni2or()5 isnHt itJ

ATTY. BANIQUED : No, Yo"r $onor.

J. PANGANIBAN : It is notJ

ATTY. BANIQUED : ItHs not, ,e4+"se, Yo"r $onor, t1ere is +n
E'e4"ti!e Or&er t1+t *r+nte& t1e Petro)e"(
4o(%+nies so(e s",si&5 . . . interr"%te&


J. PANGANIBAN : T1+tHs 4orre4t . . .

ATTY. BANIQUED : . . . +n& t1ere2ore t1+t <+s (e+nt to te(%er
t1e i(%+4t . . . interr"%te&


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 <o")& ,e t1e e)i(in+tion o2 t1e E'4ise
T+' +n& t1e i(%ort &"ties. T1+t is <15, it is not
4orre4t to s+5 t1+t t1e VAT +s to %etro)e"( &e+)ers
in4re+se& %ri4es ,5 -/I.

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

J. PANGANIBAN : An& t1ere2ore, t1ere is no 3"sti2i4+tion 2or
in4re+sin* t1e ret+i) %ri4e ,5 -/I to 4o!er t1e E-V+t
t+'. I2 5o" 4onsi&er t1e e'4ise t+' +n& t1e i(%ort
&"ties, t1e Net T+' <o")& %ro,+,)5 ,e in t1e
nei*1,or1oo& o2 8IJ Ce +re not *oin* into e'+4t
2i*"res I +( 3"st tr5in* to &e)i!er + %oint t1+t
&i22erent in&"stries, &i22erent %ro&"4ts, &i22erent
ser!i4es +re 1it &i22erent)5. So itHs not 4orre4t to s+5
t1+t +)) %ri4es ("st *o "% ,5 -/I.
ATTY. BANIQUED : Yo"Hre ri*1t, Yo"r $onor.


J. PANGANIBAN : No<. ;or inst+n4e, Do(esti4 Air)ine
4o(%+nies, Mr. #o"nse), +re +t %resent i(%ose& +
S+)es T+' o2 @I. C1en t1is E-V+t )+< too= e22e4t
t1e S+)es T+' <+s +)so re(o!e& +s + (iti*+tin*
(e+s"re. So, t1ere2ore, t1ere is no 3"sti2i4+tion to
in4re+se t1e 2+res ,5 -/I +t ,est 8I, 4orre4tJ

ATTY. BANIQUED : I *"ess so, Yo"r $onor, 5es.

J. PANGANIBAN : T1ere +re ot1er %ro&"4ts t1+t t1e %eo%)e
<ere 4o(%)+inin* on t1+t 2irst &+5, <ere ,ein*
in4re+se& +r,itr+ri)5 ,5 -/I. An& t1+tHs one re+son
+(on* (+n5 ot1ers t1is #o"rt 1+& to iss"e TRO
,e4+"se o2 t1e 4on2"sion in t1e i(%)e(ent+tion.
T1+tHs <15 <e +&&e& +s +n iss"e in t1is 4+se, e!en i2
itHs t+n*enti+))5 t+=en "% ,5 t1e %)e+&in*s o2 t1e
%+rties, t1e 4on2"sion in t1e i(%)e(ent+tion o2 t1e
E-!+t. O"r %eo%)e <ere s",3e4te& to t1e (er45 o2
t1+t 4on2"sion o2 +n +4ross t1e ,o+r& in4re+se o2
-/I, <1i41 5o" 5o"rse)2 no< +&(it +n& I t1in=
e!en t1e Go!ern(ent <i)) +&(it is in4orre4t. In
so(e 4+ses, it s1o")& ,e @I on)5, in so(e 4+ses it
s1o")& ,e EI &e%en&in* on t1ese (iti*+tin*
(e+s"res +n& t1e )o4+tion +n& sit"+tion o2 e+41
%ro&"4t, o2 e+41 ser!i4e, o2 e+41 4o(%+n5, isnHt itJ

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

J. PANGANIBAN : A)ri*1t. So t1+tHs one re+son <15 <e 1+& to
iss"e + TRO %en&in* t1e 4)+ri2i4+tion o2 +)) t1ese
+n& <e <is1 t1e *o!ern(ent <i)) t+=e ti(e to
4)+ri25 +)) t1ese ,5 (e+ns o2 + (ore &et+i)e&
i(%)e(entin* r")es, in 4+se t1e )+< is "%1e)& ,5 t1is
#o"rt. . . .
AEB


T1e #o"rt +)so &ire4te& t1e %+rties to 2i)e t1eir res%e4ti!e Me(or+n&+.

G.R. No. $%&'(%

Be2ore R.A. No. ?@@8 too= e22e4t, %etitioners ABAKADA GURO P+rt5
List, et al., 2i)e& + %etition 2or %ro1i,ition on M+5 .8, .//0. T1e5 6"estion
t1e 4onstit"tion+)it5 o2 Se4tions D, 0 +n& E o2 R.A. No. ?@@8, +(en&in*
Se4tions -/E, -/8 +n& -/9, res%e4ti!e)5, o2 t1e N+tion+) Intern+) Re!en"e
#o&e 7NIR#:. Se4tion D i(%oses + -/I VAT on s+)e o2 *oo&s +n&
%ro%erties, Se4tion 0 i(%oses + -/I VAT on i(%ort+tion o2 *oo&s, +n&
Se4tion E i(%oses + -/I VAT on s+)e o2 ser!i4es +n& "se or )e+se o2
%ro%erties. T1ese 6"estione& %ro!isions 4ont+in + "ni2or( proviso
+"t1oriKin* t1e Presi&ent, "%on re4o((en&+tion o2 t1e Se4ret+r5 o2 ;in+n4e,
to r+ise t1e VAT r+te to -.I, e22e4ti!e J+n"+r5 -, .//E, +2ter +n5 o2 t1e
2o))o<in* 4on&itions 1+!e ,een s+tis2ie&, to <it:

. . . T1+t t1e Presi&ent, "%on t1e re4o((en&+tion o2 t1e Se4ret+r5
o2 ;in+n4e, s1+)), e22e4ti!e J+n"+r5 -, .//E, r+ise t1e r+te o2 !+)"e-+&&e&
t+' to t<e)!e %er4ent 7-.I:, +2ter +n5 o2 t1e 2o))o<in* 4on&itions 1+s ,een
s+tis2ie&:

7i: V+)"e-+&&e& t+' 4o))e4tion +s + %er4ent+*e o2 Gross Do(esti4
Pro&"4t 7GDP: o2 t1e %re!io"s 5e+r e'4ee&s t<o +n& 2o"r-2i2t1 %er4ent 7.
DL0I:M or

7ii: N+tion+) *o!ern(ent &e2i4it +s + %er4ent+*e o2 GDP o2 t1e
%re!io"s 5e+r e'4ee&s one +n& one-1+)2 %er4ent 7- NI:.


Petitioners +r*"e t1+t t1e )+< is "n4onstit"tion+), +s it 4onstit"tes
+,+n&on(ent ,5 #on*ress o2 its e'4)"si!e +"t1orit5 to 2i' t1e r+te o2 t+'es
"n&er Arti4)e VI, Se4tion .97.: o2 t1e -?98 P1i)i%%ine #onstit"tion.

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

On J"ne ?, .//0, Sen. A6"i)ino Q. Pi(ente), Jr., et al., 2i)e& + %etition
2or certiorari )i=e<ise +ss+i)in* t1e 4onstit"tion+)it5 o2 Se4tions D, 0 +n& E
o2 R.A. No. ?@@8.
Asi&e 2ro( 6"estionin* t1e so-4+))e& stand-by authority o2 t1e
Presi&ent to in4re+se t1e VAT r+te to -.I, on t1e *ro"n& t1+t it +(o"nts to
+n "n&"e &e)e*+tion o2 )e*is)+ti!e %o<er, %etitioners +)so 4onten& t1+t t1e
in4re+se in t1e VAT r+te to -.I 4ontin*ent on +n5 o2 t1e t<o 4on&itions
,ein* s+tis2ie& !io)+tes t1e &"e %ro4ess 4)+"se e(,o&ie& in Arti4)e III,
Se4tion - o2 t1e #onstit"tion, +s it i(%oses +n "n2+ir +n& +&&ition+) t+'
,"r&en on t1e %eo%)e, in t1+t: 7-: t1e -.I in4re+se is +(,i*"o"s ,e4+"se it
&oes not st+te i2 t1e r+te <o")& ,e ret"rne& to t1e ori*in+) -/I i2 t1e
4on&itions +re no )on*er s+tis2ie&M 7.: t1e r+te is "n2+ir +n& "nre+son+,)e, +s
t1e %eo%)e +re "ns"re o2 t1e +%%)i4+,)e VAT r+te 2ro( 5e+r to 5e+rM +n& 7@:
t1e in4re+se in t1e VAT r+te, <1i41 is s"%%ose& to ,e +n in4enti!e to t1e
Presi&ent to r+ise t1e VAT 4o))e4tion to +t )e+st .
D
L
0
o2 t1e GDP o2 t1e
%re!io"s 5e+r, s1o")& on)5 ,e ,+se& on 2is4+) +&e6"+45.

Petitioners 2"rt1er 4)+i( t1+t t1e in4)"sion o2 + stand-by authority
*r+nte& to t1e Presi&ent ,5 t1e Bi4+(er+) #on2eren4e #o((ittee is +
!io)+tion o2 t1e Fno-+(en&(ent r")eG "%on )+st re+&in* o2 + ,i)) )+i& &o<n in
Arti4)e VI, Se4tion .E7.: o2 t1e #onstit"tion.

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

T1ere+2ter, + %etition 2or %ro1i,ition <+s 2i)e& on J"ne .?, .//0, ,5
t1e Asso4i+tion o2 Pilipinas S1e)) De+)ers, In4., et al., +ss+i)in* t1e 2o))o<in*
%ro!isions o2 R.A. No. ?@@8:
-: Section , +(en&in* Se4tion --/ 7A:7.: o2 t1e NIR#, re6"irin*
t1+t t1e in%"t t+' on &e%re4i+,)e *oo&s s1+)) ,e +(ortiKe& o!er +
E/-(ont1 %erio&, i2 t1e +46"isition, e'4)"&in* t1e VAT
4o(%onents, e'4ee&s One Mi))ion Pesos 7P-, ///,///.//:M

.: Section , +(en&in* Se4tion --/ 7B: o2 t1e NIR#, i(%osin* + 8/I
)i(it on t1e +(o"nt o2 in%"t t+' to ,e 4re&ite& +*+inst t1e o"t%"t
t+'M +n&

@: Section !", +(en&in* Se4tion --D 74: o2 t1e NIR#, +"t1oriKin* 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 + 0I 2in+) <it11o)&in*
t+' on *ross %+5(ents o2 *oo&s +n& ser!i4es, <1i41 +re s",3e4t to
-/I VAT "n&er Se4tions -/E 7s+)e o2 *oo&s +n& %ro%erties: +n&
-/9 7s+)e o2 ser!i4es +n& "se or )e+se o2 %ro%erties: o2 t1e NIR#.


Petitioners 4onten& t1+t t1ese %ro!isions +re "n4onstit"tion+) 2or ,ein*
+r,itr+r5, o%%ressi!e, e'4essi!e, +n& 4on2is4+tor5.

PetitionersH +r*"(ent is %re(ise& on t1e 4onstit"tion+) ri*1t o2 non-
&e%ri!+tion o2 )i2e, )i,ert5 or %ro%ert5 <it1o"t &"e %ro4ess o2 )+< "n&er
Arti4)e III, Se4tion - o2 t1e #onstit"tion. A44or&in* to %etitioners, t1e
4onteste& se4tions i(%ose )i(it+tions on t1e +(o"nt o2 in%"t t+' t1+t (+5 ,e
4)+i(e&. Petitioners +)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& <it1o"t &"e
%ro4ess o2 )+<. Petitioners 2"rt1er 4onten& t1+t )i=e +n5 ot1er %ro%ert5 or
%ro%ert5 ri*1t, t1e in%"t t+' 4re&it (+5 ,e tr+ns2erre& or &is%ose& o2, +n&
t1+t ,5 )i(itin* t1e s+(e, t1e *o!ern(ent *ets to t+' + %ro2it or !+)"e-+&&e&
e!en i2 t1ere is no %ro2it or !+)"e-+&&e&.

Petitioners +)so ,e)ie!e t1+t t1ese %ro!isions !io)+te t1e 4onstit"tion+)
*"+r+ntee o2 e6"+) %rote4tion o2 t1e )+< "n&er Arti4)e III, Se4tion - o2 t1e
#onstit"tion, +s t1e )i(it+tion on t1e 4re&it+,)e in%"t t+' i2: 7-: t1e entit5 1+s
+ 1i*1 r+tio o2 in%"t t+'M or 7.: in!ests in 4+%it+) e6"i%(entM or 7@: 1+s
se!er+) tr+ns+4tions <it1 t1e *o!ern(ent, is not ,+se& on re+) +n& s",st+nti+)
&i22eren4es to (eet + !+)i& 4)+ssi2i4+tion.

L+st)5, %etitioners 4onten& t1+t t1e 8/I )i(it is +n5t1in* ,"t
%ro*ressi!e, !io)+ti!e o2 Arti4)e VI, Se4tion .97-: o2 t1e #onstit"tion, +n&
t1+t it is t1e s(+))er ,"sinesses <it1 1i*1er in%"t t+' to o"t%"t t+' r+tio t1+t
<i)) s"22er t1e 4onse6"en4es t1ereo2 2or it <i%es o"t <1+te!er (e+*er
(+r*ins t1e %etitioners (+=e.

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

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 2or certiorari on J"ne @/, .//0. T1e5
6"estion t1e 4onstit"tion+)it5 o2 R.A. No. ?@@8 on t1e 2o))o<in* *ro"n&s:

-: Se4tions D, 0, +n& E o2 R.A. No. ?@@8 4onstit"te +n "n&"e
&e)e*+tion o2 )e*is)+ti!e %o<er, in !io)+tion o2 Arti4)e VI, Se4tion
.97.: o2 t1e #onstit"tionM

.: T1e Bi4+(er+) #on2eren4e #o((ittee +4te& <it1o"t 3"ris&i4tion
in &e)etin* t1e no pass on %ro!isions %resent in Sen+te Bi)) No.
-?0/ +n& $o"se Bi)) No. @8/0M +n&

@: Insertion ,5 t1e Bi4+(er+) #on2eren4e #o((ittee o2 Se4tions .8,
.9, @D, --E, --8, --?, -.-, -.0,
A8B
-D9, -0-, .@E, .@8 +n& .99,
<1i41 <ere %resent in Sen+te Bi)) No. -?0/, !io)+tes Arti4)e VI,
Se4tion .D7-: o2 t1e #onstit"tion, <1i41 %ro!i&es t1+t +))
+%%ro%ri+tion, re!en"e or t+ri22 ,i))s s1+)) ori*in+te e'4)"si!e)5 in
t1e $o"se o2 Re%resent+ti!es

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

On t1e e)e!ent1 1o"r, Go!ernor Enri6"e T. G+r4i+ 2i)e& + %etition 2or
certiorari +n& %ro1i,ition on J")5 ./, .//0, +))e*in* "n4onstit"tion+)it5 o2
t1e )+< on t1e *ro"n& t1+t t1e )i(it+tion on t1e 4re&it+,)e in%"t t+' in e22e4t
+))o<s VAT-re*istere& est+,)is1(ents to ret+in + %ortion o2 t1e t+'es t1e5
4o))e4t, t1"s !io)+tin* t1e %rin4i%)e t1+t t+' 4o))e4tion +n& re!en"e s1o")& ,e
so)e)5 +))o4+te& 2or %",)i4 %"r%oses +n& e'%en&it"res. Petitioner G+r4i+
2"rt1er 4)+i(s t1+t +))o<in* t1ese est+,)is1(ents to %+ss on t1e t+' to t1e
4ons"(ers is ine6"it+,)e, in !io)+tion o2 Arti4)e VI, Se4tion .97-: o2 t1e
#onstit"tion.

RESPONDENTS6 COMMENT

T1e O22i4e o2 t1e So)i4itor Gener+) 7OSG: 2i)e& + #o((ent in ,e1+)2
o2 res%on&ents. Pre)i(in+ri)5, res%on&ents 4onten& t1+t R.A. No. ?@@8
en3o5s t1e %res"(%tion o2 4onstit"tion+)it5 +n& %etitioners 2+i)e& to 4+st
&o",t on its !+)i&it5.

Re)5in* on t1e 4+se o2 #olentino vs. Secretary o$ %inance, .@0 S#RA
E@/ 7-??D:, 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<er o2 t1e Sen+te 4on4o(it+nt t1ereto, 1+!e
+)re+&5 ,een sett)e&. Cit1 re*+r& to t1e iss"e o2 "n&"e &e)e*+tion o2
)e*is)+ti!e %o<er to t1e Presi&ent, res%on&ents 4onten& t1+t t1e )+< is
4o(%)ete +n& )e+!es no &is4retion to t1e Presi&ent ,"t to in4re+se t1e r+te to
-.I on4e +n5 o2 t1e t<o 4on&itions %ro!i&e& t1erein +rise.

Res%on&ents +)so re2"te %etitionersH +r*"(ent t1+t t1e in4re+se to
-.I, +s <e)) +s t1e 8/I )i(it+tion on t1e 4re&it+,)e in%"t t+', t1e E/-(ont1
+(ortiK+tion on t1e %"r41+se or i(%ort+tion o2 4+%it+) *oo&s e'4ee&in*
P-,///,///.//, +n& t1e 0I 2in+) <it11o)&in* t+' ,5 *o!ern(ent +*en4ies, is
+r,itr+r5, o%%ressi!e, +n& 4on2is4+tor5, +n& t1+t it !io)+tes t1e 4onstit"tion+)
%rin4i%)e on %ro*ressi!e t+'+tion, +(on* ot1ers.

;in+))5, res%on&ents (+ni2est t1+t R.A. No. ?@@8 is t1e +n41or o2 t1e
*o!ern(entHs 2is4+) re2or( +*en&+. A re2or( in t1e !+)"e-+&&e& s5ste( o2
t+'+tion is t1e 4ore re!en"e (e+s"re t1+t <i)) ti)t t1e ,+)+n4e to<+r&s +
s"st+in+,)e (+4roe4ono(i4 en!iron(ent ne4ess+r5 2or e4ono(i4 *ro<t1.

ISSUES

T1e #o"rt &e2ine& t1e iss"es, +s 2o))o<s:

PROCEDURAL ISSUE

C1et1er R.A. No. ?@@8 !io)+tes t1e 2o))o<in* %ro!isions o2 t1e
#onstit"tion:

+. Arti4)e VI, Se4tion .D, +n&
,. Arti4)e VI, Se4tion .E7.:

SUBSTANTI"E ISSUES

-. C1et1er Se4tions D, 0 +n& E o2 R.A. No. ?@@8, +(en&in* Se4tions
-/E, -/8 +n& -/9 o2 t1e NIR#, !io)+te t1e 2o))o<in* %ro!isions o2 t1e
#onstit"tion:

+. Arti4)e VI, Se4tion .97-:, +n&
,. Arti4)e VI, Se4tion .97.:

.. C1et1er Se4tion 9 o2 R.A. No. ?@@8, +(en&in* Se4tions --/7A:7.:
+n& --/7B: o2 t1e NIR#M +n& Se4tion -. o2 R.A. No. ?@@8, +(en&in*
Se4tion --D7#: o2 t1e NIR#, !io)+te t1e 2o))o<in* %ro!isions o2 t1e
#onstit"tion:

+. Arti4)e VI, Se4tion .97-:, +n&
,. Arti4)e III, Se4tion -


RULING OF T)E COURT

As + %re)"&e, t1e #o"rt &ee(s it +%t to rest+te t1e *ener+) %rin4i%)es
+n& 4on4e%ts o2 !+)"e-+&&e& t+' 7VAT:, +s t1e 4on2"sion +n& ine!it+,)5,
)iti*+tion, ,ree&s 2ro( + 2+))+4io"s notion o2 its n+t"re.

T1e VAT is + t+' on s%en&in* or 4ons"(%tion. It is )e!ie& on t1e s+)e,
,+rter, e'41+n*e or )e+se o2 *oo&s or %ro%erties +n& ser!i4es.
A9B
Bein* +n
in&ire4t t+' on e'%en&it"re, t1e se))er o2 *oo&s or ser!i4es (+5 %+ss on t1e
+(o"nt o2 t+' %+i& to t1e ,"5er,
A?B
<it1 t1e se))er +4tin* (ere)5 +s + t+'
4o))e4tor.
A-/B
T1e ,"r&en o2 VAT is inten&e& to 2+)) on t1e i((e&i+te ,"5ers
+n& ")ti(+te)5, t1e en&-4ons"(ers.

In 4ontr+st, + &ire4t t+' is + t+' 2or <1i41 + t+'%+5er is &ire4t)5 )i+,)e
on t1e tr+ns+4tion or ,"siness it en*+*es in, <it1o"t tr+ns2errin* t1e ,"r&en
to so(eone e)se.
A--B
E'+(%)es +re in&i!i&"+) +n& 4or%or+te in4o(e t+'es,
tr+ns2er t+'es, +n& resi&en4e t+'es.
A-.B


In t1e P1i)i%%ines, t1e !+)"e-+&&e& s5ste( o2 s+)es t+'+tion 1+s )on*
,een in e'isten4e, +),eit in + &i22erent (o&e. Prior to -?89, t1e s5ste( <+s +
sin*)e-st+*e t+' 4o(%"te& "n&er t1e F4ost &e&"4tion (et1o&G +n& <+s
%+5+,)e on)5 ,5 t1e ori*in+) se))ers. T1e sin*)e-st+*e s5ste( <+s
s",se6"ent)5 (o&i2ie&, +n& + (i't"re o2 t1e F4ost &e&"4tion (et1o&G +n&
Ft+' 4re&it (et1o&G <+s "se& to &eter(ine t1e !+)"e-+&&e& t+' %+5+,)e.
A-@B

Un&er t1e Ft+' 4re&it (et1o&,G +n entit5 4+n 4re&it +*+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.
A-DB


It <+s on)5 in -?98, <1en Presi&ent #or+Kon #. A6"ino iss"e&
E'e4"ti!e Or&er No. .8@, t1+t t1e VAT s5ste( <+s r+tion+)iKe& ,5 i(%osin*
+ (")ti-st+*e t+' r+te o2 /I or -/I on +)) s+)es "sin* t1e Ft+' 4re&it
(et1o&.G
A-0B


E.O. No. .8@ <+s 2o))o<e& ,5 R.A. No. 88-E or t1e E'%+n&e& VAT
L+<,
A-EB
R.A. No. 9.D- or t1e I(%ro!e& VAT L+<,
A-8B
R.A. No. 9D.D or t1e
T+' Re2or( A4t o2 -??8,
A-9B
+n& 2in+))5, t1e %resent)5 ,e)e+*"ere& R.A. No.
?@@8, +)so re2erre& to ,5 res%on&ents +s t1e VAT Re2or( A4t.

T1e #o"rt <i)) no< &is4"ss t1e iss"es in )o*i4+) se6"en4e.

PROCEDURAL ISSUE
I.
C1et1er R.A. No. ?@@8 !io)+tes t1e 2o))o<in* %ro!isions o2 t1e
#onstit"tion:

+. Arti4)e VI, Se4tion .D, +n&
,. Arti4)e VI, Se4tion .E7.:

A. #he Bica&eral 'on$erence 'o&&ittee

Petitioners Es4"&ero, et al., +n& Pi(ente), et al., +))e*e t1+t t1e
Bi4+(er+) #on2eren4e #o((ittee e'4ee&e& its +"t1orit5 ,5:

-: Insertin* t1e stand-by authority in 2+!or o2 t1e Presi&ent in
Se4tions D, 0, +n& E o2 R.A. No. ?@@8M

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

@: Insertin* t1e %ro!ision i(%osin* + 8/I )i(it on t1e +(o"nt o2
in%"t t+' to ,e 4re&ite& +*+inst t1e o"t%"t t+'M +n&

D: 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<ers o2 t1e
Bi4+(er+) #on2eren4e #o((ittee.

It s1o")& ,e ,orne in (in& t1+t t1e %o<er o2 intern+) re*")+tion +n&
&is4i%)ine +re intrinsi4 in +n5 )e*is)+ti!e ,o&5 2or, +s "nerrin*)5 e)"4i&+te&
,5 J"sti4e Stor5, ;G5H: 39e 1oIer !5! o3 eE523# 53 Io8l! 4e 833erly
5m1raB35Ba4le 3o 3ra2aB3 39e 4825e22 o: 39e a35o# e539er a3 all# or a3
lea23 I539 !eBeBy# !el54era35o# a! or!er.G
A-?B
T1"s, Arti4)e VI, Se4tion
-E 7@: o2 t1e #onstit"tion %ro!i&es t1+t Fe+41 $o"se (+5 &eter(ine t1e r")es
o2 its %ro4ee&in*s.G P"rs"+nt to t1is in1erent 4onstit"tion+) %o<er to
%ro(")*+te +n& i(%)e(ent its o<n r")es o2 %ro4e&"re, t1e res%e4ti!e r")es o2
e+41 1o"se o2 #on*ress %ro!i&e& 2or t1e 4re+tion o2 + Bi4+(er+) #on2eren4e
#o((ittee.

T1"s, R")e OIV, Se4tions 99 +n& 9? o2 t1e R")es o2 $o"se o2
Re%resent+ti!es %ro!i&es +s 2o))o<s:

Se4. 99. 'on$erence 'o&&ittee. P In t1e e!ent t1+t t1e $o"se &oes
not +*ree <it1 t1e Sen+te on t1e +(en&(ent to +n5 ,i)) or 3oint reso)"tion,
t1e &i22eren4es (+5 ,e sett)e& ,5 t1e 4on2eren4e 4o((ittees o2 ,ot1
41+(,ers.

In reso)!in* t1e &i22eren4es <it1 t1e Sen+te, t1e $o"se %+ne) s1+)),
+s ("41 +s %ossi,)e, +&1ere to +n& s"%%ort t1e $o"se Bi)). I2 t1e
&i22eren4es <it1 t1e Sen+te +re so s",st+nti+) t1+t t1e5 (+teri+))5 i(%+ir
t1e $o"se Bi)), t1e %+ne) s1+)) re%ort s"41 2+4t to t1e $o"se 2or t1e )+tterHs
+%%ro%ri+te +4tion.

Se4. 9?. 'on$erence 'o&&ittee Reports. P . . . E+41 re%ort s1+))
4ont+in + &et+i)e&, s"22i4ient)5 e'%)i4it st+te(ent o2 t1e 41+n*es in or
+(en&(ents to t1e s",3e4t (e+s"re.

. . .

T1e #1+ir(+n o2 t1e $o"se %+ne) (+5 ,e inter%e))+te& on t1e
#on2eren4e #o((ittee Re%ort %rior to t1e !otin* t1ereon. T1e $o"se
s1+)) !ote on t1e #on2eren4e #o((ittee Re%ort in t1e s+(e (+nner +n&
%ro4e&"re +s it !otes on + ,i)) on t1ir& +n& 2in+) re+&in*.


R")e OII, 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 <it1 t1e $o"se
o2 Re%resent+ti!es on t1e %ro!ision o2 +n5 ,i)) or 3oint reso)"tion, t1e
&i22eren4es s1+)) ,e sett)e& ,5 + 4on2eren4e 4o((ittee o2 ,ot1 $o"ses
<1i41 s1+)) (eet <it1in ten 7-/: &+5s +2ter t1eir 4o(%osition. T1e
Presi&ent s1+)) &esi*n+te t1e (e(,ers o2 t1e Sen+te P+ne) in t1e
4on2eren4e 4o((ittee <it1 t1e +%%ro!+) o2 t1e Sen+te.

E+41 #on2eren4e #o((ittee Re%ort s1+)) 4ont+in + &et+i)e& +n&
s"22i4ient)5 e'%)i4it st+te(ent o2 t1e 41+n*es in, or +(en&(ents to t1e
s",3e4t (e+s"re, +n& s1+)) ,e si*ne& ,5 + (+3orit5 o2 t1e (e(,ers o2 e+41
$o"se %+ne), !otin* se%+r+te)5.

A 4o(%+r+ti!e %resent+tion o2 t1e 4on2)i4tin* $o"se +n& Sen+te
%ro!isions +n& + re4on4i)e& !ersion t1ereo2 <it1 t1e e'%)+n+tor5 st+te(ent
o2 t1e 4on2eren4e 4o((ittee s1+)) ,e +tt+41e& to t1e re%ort.

. . .


T1e 4re+tion o2 s"41 4on2eren4e 4o((ittee <+s +%%+rent)5 in
res%onse to + %ro,)e(, not +&&resse& ,5 +n5 4onstit"tion+) %ro!ision, <1ere
t1e t<o 1o"ses o2 #on*ress 2in& t1e(se)!es in &is+*ree(ent o!er 41+n*es or
+(en&(ents intro&"4e& ,5 t1e ot1er 1o"se in + )e*is)+ti!e ,i)). Gi!en t1+t
one o2 t1e (ost ,+si4 %o<ers o2 t1e )e*is)+ti!e ,r+n41 is to 2or(")+te +n&
i(%)e(ent its o<n r")es o2 %ro4ee&in*s +n& to &is4i%)ine its (e(,ers, (+5
t1e #o"rt t1en &e)!e into t1e &et+i)s o2 1o< #on*ress 4o(%)ies <it1 its
intern+) r")es or 1o< it 4on&"4ts its ,"siness o2 %+ssin* )e*is)+tionJ Note
t1+t in t1e %resent %etitions, t1e iss"e is not <1et1er %ro!isions o2 t1e r")es
o2 ,ot1 1o"ses 4re+tin* t1e ,i4+(er+) 4on2eren4e 4o((ittee +re
"n4onstit"tion+), 483 I9e39er 39e 45Bameral Bo:ereBe Bomm533ee 9a2
23r5B3ly Bom1l5e! I539 39e r8le2 o: 4o39 9o82e2# 39ere4y rema557
I5395 39e J8r52!5B35o Bo:erre! 81o 53 4y Co7re22.

In t1e re4ent 4+se o2 %ari(as vs. #he )*ecutive Secretary,
A./B
t1e #o"rt
)n Banc, 8a5mo82ly reiter+te& +n& e(%1+siKe& its +&1eren4e to t1e
Fenro))e& ,i)) &o4trine,G t1"s, &e4)inin* t1erein %etitionersH %)e+ 2or t1e #o"rt
to *o ,e1in& t1e enro))e& 4o%5 o2 t1e ,i)). Ass+i)e& in s+i& 4+se <+s
#on*ressHs 4re+tion o2 t<o sets o2 ,i4+(er+) 4on2eren4e 4o((ittees, t1e )+4=
o2 re4or&s o2 s+i& 4o((itteesH %ro4ee&in*s, t1e +))e*e& !io)+tion o2 s+i&
4o((ittees o2 t1e r")es o2 ,ot1 1o"ses, +n& t1e &is+%%e+r+n4e or &e)etion o2
one o2 t1e %ro!isions in t1e 4o(%ro(ise ,i)) s",(itte& ,5 t1e ,i4+(er+)
4on2eren4e 4o((ittee. It <+s +r*"e& t1+t s"41 irre*")+rities in t1e %+ss+*e
o2 t1e )+< n"))i2ie& R.A. No. ?//E, or t1e ;+ir E)e4tion A4t.

Stri=in* &o<n s"41 +r*"(ent, t1e #o"rt 1e)& t1"s:

Un&er t1e Fenro))e& ,i)) &o4trine,G t1e si*nin* o2 + ,i)) ,5 t1e
S%e+=er o2 t1e $o"se +n& t1e Sen+te Presi&ent +n& t1e 4erti2i4+tion o2 t1e
Se4ret+ries o2 ,ot1 $o"ses o2 #on*ress t1+t it <+s %+sse& +re 4on4)"si!e
o2 its &"e en+4t(ent. A re!ie< o2 4+ses re!e+)s t1e #o"rtHs 4onsistent
+&1eren4e to t1e r")e. T9e Co8r3 :5!2 o rea2o 3o !eC5a3e :rom 39e
2al83ary r8le 5 3952 Ba2e I9ere 39e 5rre78lar535e2 alle7e! 4y 39e
1e3535oer2 mo23ly 5ColCe! 39e 53eral r8le2 o: Co7re22# e.g.#
Brea35o o: 39e .
!
or D
r!
B5Bameral Co:ereBe Comm533ee 4y 39e
)o82e. T952 Co8r3 52 o3 39e 1ro1er :or8m :or 39e e:orBeme3 o:
39e2e 53eral r8le2 o: Co7re22# I9e39er )o82e or Sea3e.
Parl5ame3ary r8le2 are merely 1roBe!8ral a! I539 39e5r o42erCaBe
39e Bo8r32 9aCe o BoBer. @9a3eCer !o8432 39ere may 4e a2 3o 39e
:ormal Cal5!53y o: Re1. AB3 No. K''% m823 4e re2olCe! 5 532 :aCor. T1e
#o"rt reiter+tes its r")in* in Arroyo vs. De +enecia, vi,.:

B"t t1e Ba2e2# 4o39 9ere a! a4roa!# 5 Cary57
:orm2 o: eE1re225o# all !ey 3o 39e Bo8r32 39e 1oIer 3o
5L85re 53o alle7a35o2 39a3# 5 eaB357 a laI# a )o82e
o: Co7re22 :a5le! 3o Bom1ly I539 532 oI r8le2# 5 39e
a42eBe o: 29oI57 39a3 39ere Ia2 a C5ola35o o: a
Bo2353835oal 1roC525o or 39e r57932 o: 1r5Ca3e
5!5C5!8al2. In Os&e(a v. Pendatun, it <+s 1e)&: FAt +n5
r+te, 4o"rts 1+!e &e4)+re& t1+t Qt1e r")es +&o%te& ,5
&e)i,er+ti!e ,o&ies +re s",3e4t to re!o4+tion, (o&i2i4+tion
or <+i!er +t t1e %)e+s"re o2 t1e ,o&5 +&o%tin* t1e(.H A!
53 9a2 4ee 2a5! 39a3 ;Parl5ame3ary r8le2 are merely
1roBe!8ral# a! I539 39e5r o42erCaBe# 39e Bo8r32 9aCe
o BoBer. T9ey may 4e Ia5Ce! or !52re7ar!e! 4y 39e
le752la35Ce 4o!y.< Co2eL8e3ly# ;mere :a5l8re 3o
Bo:orm 3o 1arl5ame3ary 82a7e I5ll o3 5Cal5!a3e 39e
aB35o (3aMe 4y a !el54era35Ce 4o!y) I9e 39e reL85253e
8m4er o: mem4er2 9aCe a7ree! 3o a 1ar35B8lar
mea28re.G
A.-B
7E(%1+sis s"%%)ie&:


T1e 2ore*oin* &e4)+r+tion is e'+4t)5 in %oint <it1 t1e %resent 4+ses,
<1ere %etitioners +))e*e irre*")+rities 4o((itte& ,5 t1e 4on2eren4e
4o((ittee in intro&"4in* 41+n*es or &e)etin* %ro!isions in t1e $o"se +n&
Sen+te ,i))s. A=in to t1e %ari(as 4+se,
A..B
t1e %resent %etitions +)so r+ise +n
iss"e re*+r&in* t1e +4tions t+=en ,5 t1e 4on2eren4e 4o((ittee on (+tters
re*+r&in* #on*ressH 4o(%)i+n4e <it1 its o<n intern+) r")es. As st+te&
e+r)ier, one o2 t1e (ost ,+si4 +n& in1erent %o<er o2 t1e )e*is)+t"re is t1e
%o<er to 2or(")+te r")es 2or its %ro4ee&in*s +n& t1e &is4i%)ine o2 its
(e(,ers. #on*ress is t1e ,est 3"&*e o2 1o< it s1o")& 4on&"4t its o<n
,"siness e'%e&itio"s)5 +n& in t1e (ost or&er)5 (+nner. It is +)so t1e so)e
4on4ern o2 #on*ress to insti)) &is4i%)ine +(on* t1e (e(,ers o2 its
4on2eren4e 4o((ittee i2 it ,e)ie!es t1+t s+i& (e(,ers !io)+te& +n5 o2 its
r")es o2 %ro4ee&in*s. E!en t1e e'%+n&e& 3"ris&i4tion o2 t1is #o"rt 4+nnot
+%%)5 to 6"estions re*+r&in* on)5 t1e intern+) o%er+tion o2 #on*ress, t1"s,
t1e #o"rt is <ont to &en5 + re!ie< o2 t1e intern+) %ro4ee&in*s o2 + 4o-e6"+)
,r+n41 o2 *o!ern(ent.

Moreo!er, +s 2+r ,+4= +s -??D or (ore t1+n ten 5e+rs +*o, in t1e 4+se
o2 #olentino vs. Secretary o$ %inance,
A.@B
t1e #o"rt +)re+&5 (+&e t1e
%rono"n4e(ent t1+t FG5H: a B9a7e 52 !e25re! 5 39e 1raB35Be Go: 39e
B5Bameral Co:ereBe Comm533eeH 53 m823 4e 2o8793 5 Co7re22 25Be
3952 L8e235o 52 o3 BoCere! 4y ay Bo2353835oal 1roC525o 483 52 oly
a 53eral r8le o: eaB9 9o82e.G
A.DB
To &+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 &<e)) on t1e iss"e. T1e #o"rt o,ser!es t1+t t1ere <+s
+ ne4essit5 2or + 4on2eren4e 4o((ittee ,e4+"se + 4o(%+rison o2 t1e
%ro!isions o2 $o"se Bi)) Nos. @000 +n& @8/0 on one 1+n&, +n& Sen+te Bi))
No. -?0/ on t1e ot1er, re!e+)s t1+t t1ere <ere in&ee& &is+*ree(ents. As
%ointe& o"t in t1e %etitions, s+i& &is+*ree(ents <ere +s 2o))o<s:

)o82e B5ll No. D(((


)o82e B5ll No.D/'(

Sea3e B5ll No. $K('

With regard to Stand-By uthority! in "a#or o" $resident

Pro!i&es 2or -.I VAT
on e!er5 s+)e o2 *oo&s
or %ro%erties 7+(en&in*
Se4. -/E o2 NIR#:M -.I
VAT on i(%ort+tion o2
*oo&s 7+(en&in* Se4.
-/8 o2 NIR#:M +n& -.I
VAT on s+)e o2 ser!i4es
+n& "se or )e+se o2
%ro%erties 7+(en&in*
Se4. -/9 o2 NIR#:
Pro!i&es 2or -.I VAT in
*ener+) on s+)es o2 *oo&s or
%ro%erties +n& re&"4e& r+tes
2or s+)e o2 4ert+in )o4+))5
(+n"2+4t"re& *oo&s +n&
%etro)e"( %ro&"4ts +n& r+<
(+teri+)s to ,e "se& in t1e
(+n"2+4t"re t1ereo2
7+(en&in* Se4. -/E o2 NIR#:M
-.I VAT on i(%ort+tion o2
*oo&s +n& re&"4e& r+tes 2or
4ert+in i(%orte& %ro&"4ts
in4)"&in* %etro)e"( %ro&"4ts
7+(en&in* Se4. -/8 o2 NIR#:M
+n& -.I VAT on s+)e o2
ser!i4es +n& "se or )e+se o2
%ro%erties +n& + re&"4e& r+te
2or 4ert+in ser!i4es in4)"&in*
%o<er *ener+tion 7+(en&in*
Se4. -/9 o2 NIR#:
Pro!i&es 2or + sin*)e r+te o2
-/I VAT on s+)e o2 *oo&s
or %ro%erties 7+(en&in*
Se4. -/E o2 NIR#:, -/I
VAT on s+)e o2 ser!i4es
in4)"&in* s+)e o2 e)e4tri4it5
,5 *ener+tion 4o(%+nies,
tr+ns(ission +n&
&istri,"tion 4o(%+nies, +n&
"se or )e+se o2 %ro%erties
7+(en&in* Se4. -/9 o2
NIR#:


With regard to the no %ass-on! %ro#ision

No si(i)+r %ro!ision Pro!i&es t1+t t1e VAT
i(%ose& on %o<er *ener+tion
+n& on t1e s+)e o2 %etro)e"(
%ro&"4ts s1+)) ,e +,sor,e& ,5
*ener+tion 4o(%+nies or
se))ers, res%e4ti!e)5, +n& s1+))
not ,e %+sse& on to 4ons"(ers
Pro!i&es t1+t t1e VAT
i(%ose& on s+)es o2
e)e4tri4it5 ,5 *ener+tion
4o(%+nies +n& ser!i4es o2
tr+ns(ission 4o(%+nies +n&
&istri,"tion 4o(%+nies, +s
<e)) +s t1ose o2 2r+n41ise
*r+ntees o2 e)e4tri4 "ti)ities
s1+)) not +%%)5 to
resi&enti+)
en&-"sers. VAT s1+)) ,e
+,sor,e& ,5 *ener+tion,
tr+ns(ission, +n&
&istri,"tion 4o(%+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 <1i41 + VAT
1+s ,een %+i& s1+)) ,e
e6"+))5 &istri,"te& o!er
0 5e+rs or t1e
&e%re4i+,)e )i2e o2 s"41
4+%it+) *oo&sM t1e in%"t
t+' 4re&it 2or *oo&s +n&
ser!i4es ot1er t1+n
4+%it+) *oo&s s1+)) not
e'4ee& 0I o2 t1e tot+)
+(o"nt o2 s"41 *oo&s
+n& ser!i4esM +n& 2or
%ersons en*+*e& in
ret+i) tr+&in* o2 *oo&s,
t1e +))o<+,)e in%"t t+'
4re&it s1+)) not e'4ee&
--I o2 t1e tot+) +(o"nt
o2 *oo&s %"r41+se&.
No si(i)+r %ro!ision Pro!i&es t1+t t1e in%"t t+'
4re&it 2or 4+%it+) *oo&s on
<1i41 + VAT 1+s ,een %+i&
s1+)) ,e e6"+))5 &istri,"te&
o!er 0 5e+rs or t1e
&e%re4i+,)e )i2e o2 s"41
4+%it+) *oo&sM t1e in%"t t+'
4re&it 2or *oo&s +n&
ser!i4es ot1er t1+n 4+%it+)
*oo&s s1+)) not e'4ee& ?/I
o2 t1e o"t%"t VAT.


With regard to a'end'ents to *e 'ade to N+,C %ro#isions regarding in)o'e and
e()ise ta(es

No si(i)+r %ro!ision No si(i)+r %ro!ision Pro!i&e& 2or +(en&(ents
to se!er+) NIR# %ro!isions
re*+r&in* 4or%or+te in4o(e,
%er4ent+*e, 2r+n41ise +n&
e'4ise t+'es


T1e &is+*ree(ents ,et<een t1e %ro!isions in t1e $o"se ,i))s +n& t1e
Sen+te ,i)) <ere <it1 re*+r& to 7-: <1+t r+te o2 VAT is to ,e i(%ose&M 7.:
<1et1er on)5 t1e VAT i(%ose& on e)e4tri4it5 *ener+tion, tr+ns(ission +n&
&istri,"tion 4o(%+nies s1o")& not ,e %+sse& on to 4ons"(ers, +s %ro%ose& in
t1e Sen+te ,i)), or ,ot1 t1e VAT i(%ose& on e)e4tri4it5 *ener+tion,
tr+ns(ission +n& &istri,"tion 4o(%+nies +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))M 7@: in <1+t (+nner in%"t t+' 4re&its s1o")& ,e )i(ite&M 7D:
+n& <1et1er t1e NIR# %ro!isions on 4or%or+te in4o(e t+'es, %er4ent+*e,
2r+n41ise +n& e'4ise t+'es s1o")& ,e +(en&e&.

T1ere ,ein* &i22eren4es +n&Lor &is+*ree(ents on t1e 2ore*oin*
%ro!isions o2 t1e $o"se +n& Sen+te ,i))s, t1e Bi4+(er+) #on2eren4e
#o((ittee <+s (+n&+te& ,5 t1e r")es o2 ,ot1 1o"ses o2 #on*ress to +4t on
t1e s+(e ,5 sett)in* s+i& &i22eren4es +n&Lor &is+*ree(ents. T1e Bi4+(er+)
#on2eren4e #o((ittee +4te& on t1e &is+*reein* %ro!isions ,5 (+=in* t1e
2o))o<in* 41+n*es:

-. Cit1 re*+r& to t1e &is+*ree(ent on t1e r+te o2 VAT to ,e
i(%ose&, it <o")& +%%e+r 2ro( t1e #on2eren4e #o((ittee Re%ort t1+t t1e
Bi4+(er+) #on2eren4e #o((ittee trie& to ,ri&*e t1e *+% in t1e &i22eren4e
,et<een t1e -/I VAT r+te %ro%ose& ,5 t1e Sen+te, +n& t1e !+rio"s r+tes
<it1 -.I +s t1e 1i*1est VAT r+te %ro%ose& ,5 t1e $o"se, ,5 stri=in* +
4o(%ro(ise <1ere,5 t1e %resent -/I VAT r+te <o")& ,e ret+ine& "nti)
4ert+in 4on&itions +rise, i.e., t1e !+)"e-+&&e& t+' 4o))e4tion +s + %er4ent+*e
o2 *ross &o(esti4 %ro&"4t 7GDP: o2 t1e %re!io"s 5e+r e'4ee&s . DL0I, or
N+tion+) Go!ern(ent &e2i4it +s + %er4ent+*e o2 GDP o2 t1e %re!io"s 5e+r
e'4ee&s -NI, <1en t1e Presi&ent, "%on re4o((en&+tion o2 t1e Se4ret+r5
o2 ;in+n4e s1+)) r+ise t1e r+te o2 VAT to -.I e22e4ti!e J+n"+r5 -, .//E.

.. Cit1 re*+r& to t1e &is+*ree(ent on <1et1er on)5 t1e VAT
i(%ose& on e)e4tri4it5 *ener+tion, tr+ns(ission +n& &istri,"tion 4o(%+nies
s1o")& not ,e %+sse& on to 4ons"(ers or <1et1er ,ot1 t1e VAT i(%ose& on
e)e4tri4it5 *ener+tion, tr+ns(ission +n& &istri,"tion 4o(%+nies +n& t1e VAT
i(%ose& on s+)e o2 %etro)e"( %ro&"4ts (+5 ,e %+sse& on to 4ons"(ers, t1e
Bi4+(er+) #on2eren4e #o((ittee 41ose to sett)e s"41 &is+*ree(ent ,5
+)to*et1er &e)etin* 2ro( its Re%ort +n5 no pass-on %ro!ision.

@. Cit1 re*+r& to t1e &is+*ree(ent on <1et1er in%"t t+' 4re&its
s1o")& ,e )i(ite& or not, t1e Bi4+(er+) #on2eren4e #o((ittee &e4i&e& to
+&o%t t1e %osition o2 t1e $o"se ,5 %"ttin* + )i(it+tion on t1e +(o"nt o2
in%"t t+' t1+t (+5 ,e 4re&ite& +*+inst t1e o"t%"t t+', +)t1o"*1 it 4r+2te& its
o<n )+n*"+*e +s to t1e +(o"nt o2 t1e )i(it+tion on in%"t t+' 4re&its +n& t1e
(+nner o2 4o(%"tin* t1e s+(e ,5 %ro!i&in* t1"s:

7A: #re&it+,)e In%"t T+'. P . . .

. . .

Provided, 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 <1i41 &e&"4tion 2or &e%re4i+tion is +))o<e& "n&er t1is
#o&e, s1+)) ,e s%re+& e!en)5 o!er t1e (ont1 o2 +46"isition
+n& t1e 2i2t5-nine 70?: s"44ee&in* (ont1s i2 t1e +**re*+te
+46"isition 4ost 2or s"41 *oo&s, e'4)"&in* t1e VAT
4o(%onent t1ereo2, e'4ee&s one (i))ion Pesos
7P-,///,///.//:: PROVIDED, 1o<e!er, t1+t i2 t1e
esti(+te& "se2") )i2e o2 t1e 4+%it+) *oo& is )ess t1+n 2i!e 70:
5e+rs, +s "se& 2or &e%re4i+tion %"r%oses, t1en t1e in%"t VAT
s1+)) ,e s%re+& o!er s"41 s1orter %erio&: . . .

7B: E'4ess O"t%"t or In%"t T+'. P I2 +t t1e en&
o2 +n5 t+'+,)e 6"+rter t1e o"t%"t t+' e'4ee&s t1e in%"t t+',
t1e e'4ess s1+)) ,e %+i& ,5 t1e VAT-re*istere& %erson. I2
t1e in%"t t+' e'4ee&s t1e o"t%"t t+', t1e e'4ess s1+)) ,e
4+rrie& o!er to t1e s"44ee&in* 6"+rter or 6"+rters:
PROVIDED t1+t t1e in%"t t+' in4)"si!e o2 in%"t VAT
4+rrie& o!er 2ro( t1e %re!io"s 6"+rter t1+t (+5 ,e 4re&ite&
in e!er5 6"+rter s1+)) not e'4ee& se!ent5 %er4ent 78/I: o2
t1e o"t%"t VAT: PROVIDED, $OCEVER, T$AT +n5
in%"t t+' +ttri,"t+,)e to Kero-r+te& s+)es ,5 + VAT-
re*istere& %erson (+5 +t 1is o%tion ,e re2"n&e& or 4re&ite&
+*+inst ot1er intern+) re!en"e t+'es, . . .


D. Cit1 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/, <it1 so(e 41+n*es +s
to t1e r+te o2 t1e t+' to ,e i(%ose&.

Un&er t1e %ro!isions o2 ,ot1 t1e R")es o2 t1e $o"se o2
Re%resent+ti!es +n& Sen+te R")es, t1e Bi4+(er+) #on2eren4e #o((ittee is
(+n&+te& to sett)e t1e &i22eren4es ,et<een t1e &is+*reein* %ro!isions in t1e
$o"se ,i)) +n& t1e Sen+te ,i)). T1e ter( Fsett)eG is s5non5(o"s to
Fre4on4i)eG +n& F1+r(oniKe.G
A.0B
To re4on4i)e or 1+r(oniKe &is+*reein*
%ro!isions, t1e Bi4+(er+) #on2eren4e #o((ittee (+5 t1en 7+: +&o%t t1e
s%e4i2i4 %ro!isions o2 eit1er t1e $o"se ,i)) or Sen+te ,i)), 7,: &e4i&e t1+t
neit1er %ro!isions in t1e $o"se ,i)) or t1e %ro!isions in t1e Sen+te ,i)) <o")&
,e 4+rrie& into t1e 2in+) 2or( o2 t1e ,i)), +n&Lor 74: tr5 to +rri!e +t +
4o(%ro(ise ,et<een t1e &is+*reein* %ro!isions.


In t1e %resent 4+se, t1e 41+n*es intro&"4e& ,5 t1e Bi4+(er+)
#on2eren4e #o((ittee on &is+*reein* %ro!isions <ere (e+nt on)5 to
re4on4i)e +n& 1+r(oniKe t1e &is+*reein* %ro!isions 2or it &i& not in3e4t +n5
i&e+ or intent t1+t is <1o))5 2orei*n to t1e s",3e4t e(,r+4e& ,5 t1e ori*in+)
%ro!isions.

T1e so-4+))e& stand-by authority in 2+!or o2 t1e Presi&ent, <1ere,5
t1e r+te o2 -/I VAT <+nte& ,5 t1e Sen+te is ret+ine& "nti) s"41 ti(e t1+t
4ert+in 4on&itions +rise <1en t1e -.I VAT <+nte& ,5 t1e $o"se s1+)) ,e
i(%ose&, +%%e+rs to ,e + 4o(%ro(ise to tr5 to ,ri&*e t1e &i22eren4e in t1e
r+te o2 VAT %ro%ose& ,5 t1e t<o 1o"ses o2 #on*ress. Ne!ert1e)ess, s"41
4o(%ro(ise is sti)) tot+))5 <it1in t1e s",3e4t o2 <1+t r+te o2 VAT s1o")& ,e
i(%ose& on t+'%+5ers.

T1e no pass-on provision <+s &e)ete& +)to*et1er. In t1e tr+ns4ri%ts o2
t1e %ro4ee&in*s o2 t1e Bi4+(er+) #on2eren4e #o((ittee 1e)& on M+5 -/,
.//0, Sen. 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 <ise:

. . . t1e t1in=in* <+s 3"st to =ee% t1e VAT )+< or t1e VAT ,i))
si(%)e. An& <e <ere t1in=in* t1+t no se4tor s1o")& ,e + ,ene2i4i+r5 o2
)e*is)+ti!e *r+4e, neit1er s1o")& +n5 se4tor ,e &is4ri(in+te& on. T1e VAT
is +n in&ire4t t+'. I3 52 a 1a22 o-3aE. An& )etHs =ee% it %)+in +n& si(%)e.
LetHs not 4on2"se t1e ,i)) +n& %"t + no %+ss-on %ro!ision. T<o-t1ir&s o2
t1e <or)& 1+!e + VAT s5ste( +n& in t1is t<o-t1ir&s o2 t1e *)o,e, I 1+!e 5et
to see + VAT <it1 + no %+ss-t1o"*1 %ro!ision. So, t1e t1in=in* o2 t1e
Sen+te is ,+si4+))5 si(%)e, )etHs =ee% t1e VAT si(%)e.
A.EB
7E(%1+sis
s"%%)ie&:
Re%. Teo&oro Lo4sin 2"rt1er (+&e t1e (+ni2est+tion t1+t t1e no pass-
on %ro!ision Fne!er re+))5 en3o5e& t1e s"%%ort o2 eit1er $o"se.G
A.8B

Cit1 re*+r& to t1e +(o"nt o2 in%"t t+' to ,e 4re&ite& +*+inst o"t%"t
t+', t1e Bi4+(er+) #on2eren4e #o((ittee 4+(e to + 4o(%ro(ise on t1e
%er4ent+*e r+te o2 t1e )i(it+tion or 4+% on s"41 in%"t t+' 4re&it, ,"t +*+in,
t1e 41+n*e intro&"4e& ,5 t1e Bi4+(er+) #on2eren4e #o((ittee <+s tot+))5
<it1in t1e intent o2 ,ot1 1o"ses to %"t + 4+% on in%"t t+' t1+t (+5 ,e
4re&ite& +*+inst t1e o"t%"t t+'. ;ro( t1e in4e%tion o2 t1e s",3e4t re!en"e
,i)) in t1e $o"se o2 Re%resent+ti!es, one o2 t1e (+3or o,3e4ti!es <+s to
F%)"* + *)+rin* )oo%1o)e in t1e t+' %o)i45 +n& +&(inistr+tion ,5 4re+tin*
!it+) restri4tions on t1e 4)+i(in* o2 in%"t VAT t+' 4re&its . . .G +n& FA,B5
intro&"4in* )i(it+tions on t1e 4)+i(in* o2 t+' 4re&it, <e +re 4+%%in* + (+3or
)e+=+*e t1+t 1+s %)+4e& o"r 4o))e4tion e22orts +t +n +%%+rent
&is+&!+nt+*e.G
A.9B

As to t1e +(en&(ents to NIR# %ro!isions on t+'es ot1er t1+n t1e
!+)"e-+&&e& t+' %ro%ose& in Sen+te Bi)) No. -?0/, sin4e s+i& %ro!isions
<ere +(on* t1ose re2erre& to it, t1e 4on2eren4e 4o((ittee 1+& to +4t on t1e
s+(e +n& it ,+si4+))5 +&o%te& t1e !ersion o2 t1e Sen+te.

T1"s, +)) t1e 41+n*es or (o&i2i4+tions (+&e ,5 t1e Bi4+(er+)
#on2eren4e #o((ittee <ere *er(+ne to s",3e4ts o2 t1e %ro!isions re2erre&
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 o2
Philippine -ud.es Association vs. Prado
A.?B
+n& #olentino vs. Secretary o$
%inance,
A@/B
t1e #o"rt re4o*niKe& 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<een t1e Sen+te +n& t1e $o"se. T1"s, in t1e #olentino 4+se,
it <+s 1e)& t1+t:

. . . it is <it1in t1e %o<er o2 + 4on2eren4e 4o((ittee to in4)"&e in
its re%ort +n entire)5 ne< %ro!ision t1+t is not 2o"n& eit1er in t1e $o"se
,i)) or in t1e Sen+te ,i)). I2 t1e 4o((ittee 4+n %ro%ose +n +(en&(ent
4onsistin* o2 one or t<o %ro!isions, t1ere is no re+son <15 it 4+nnot
%ro%ose se!er+) %ro!isions, 4o))e4ti!e)5 4onsi&ere& +s +n F+(en&(ent in
t1e n+t"re o2 + s",stit"te,G so )on* +s s"41 +(en&(ent is *er(+ne to t1e
s",3e4t o2 t1e ,i))s ,e2ore t1e 4o((ittee. A2ter +)), its re%ort <+s not 2in+)
,"t nee&e& t1e +%%ro!+) o2 ,ot1 1o"ses o2 #on*ress to ,e4o(e !+)i& +s +n
+4t o2 t1e )e*is)+ti!e &e%+rt(ent. T9e B9ar7e 39a3 5 3952 Ba2e 39e
Co:ereBe Comm533ee aB3e! a2 a 395r! le752la35Ce B9am4er 52 3982
I539o83 ay 4a252.
A@-B
7E(%1+sis s"%%)ie&:


B. R.A. /o. 0112 Does /ot +iolate Article +3,
Section "45"6 o$ the 'onstitution on the
7/o-A&end&ent Rule8


Arti4)e VI, Se4. .E 7.: o2 t1e #onstit"tion, st+tes:

No ,i)) %+sse& ,5 eit1er $o"se s1+)) ,e4o(e + )+< "n)ess it 1+s
%+sse& t1ree re+&in*s on se%+r+te &+5s, +n& %rinte& 4o%ies t1ereo2 in its
2in+) 2or( 1+!e ,een &istri,"te& to its Me(,ers t1ree &+5s ,e2ore its
%+ss+*e, e'4e%t <1en t1e Presi&ent 4erti2ies to t1e ne4essit5 o2 its
i((e&i+te en+4t(ent to (eet + %",)i4 4+)+(it5 or e(er*en45. U%on t1e
)+st re+&in* o2 + ,i)), no +(en&(ent t1ereto s1+)) ,e +))o<e&, +n& t1e !ote
t1ereon s1+)) ,e t+=en i((e&i+te)5 t1ere+2ter, +n& t1e 5e+s +n& n+5s
entere& in t1e Jo"rn+).


PetitionersH +r*"(ent t1+t t1e %r+4ti4e <1ere + ,i4+(er+) 4on2eren4e
4o((ittee is +))o<e& to +&& or &e)ete %ro!isions in t1e $o"se ,i)) +n& t1e
Sen+te ,i)) +2ter t1ese 1+& %+sse& t1ree re+&in*s is in e22e4t + 4ir4"(!ention
o2 t1e Fno +(en&(ent r")eG 7Se4. .E 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((itteeHs Re%ort
in t1ese 4+ses ("st 1+!e "n&er*one t1ree re+&in*s in e+41 o2 t1e t<o
1o"ses. I2 t1+t ,e t1e 4+se, t1ere <o")& ,e no en& to ne*oti+tion sin4e
e+41 1o"se (+5 see= (o&i2i4+tion o2 t1e 4o(%ro(ise ,i)). . . .

Ar3. "I. N .% (.) m823# 39ere:ore# 4e Bo23r8e! a2 re:err57 oly
3o 45ll2 53ro!8Be! :or 39e :5r23 35me 5 e539er 9o82e o: Co7re22# o3 3o
39e Bo:ereBe Bomm533ee re1or3.
A@.B
7E(%1+sis s"%%)ie&:


T1e #o"rt reiter+tes 1ere t1+t 39e ;o-ame!me3 r8le< re:er2 oly
3o 39e 1roBe!8re 3o 4e :olloIe! 4y eaB9 9o82e o: Co7re22 I539 re7ar!
3o 45ll2 5535a3e! 5 eaB9 o: 2a5! re21eB35Ce 9o82e2# 4e:ore 2a5! 45ll 52
3ra2m533e! 3o 39e o39er 9o82e :or 532 BoB8rreBe or ame!me3.
Veri)5, to 4onstr"e s+i& %ro!ision in + <+5 +s to %ros4ri,e +n5 2"rt1er
41+n*es to + ,i)) +2ter one 1o"se 1+s !ote& on it <o")& )e+& to +,s"r&it5 +s
t1is <o")& (e+n t1+t t1e ot1er 1o"se o2 #on*ress <o")& ,e &e%ri!e& o2 its
4onstit"tion+) %o<er to +(en& or intro&"4e 41+n*es to s+i& ,i)). T1"s, Art.
VI, Se4. .E 7.: o2 t1e #onstit"tion 4+nnot ,e t+=en to (e+n t1+t t1e
intro&"4tion ,5 t1e Bi4+(er+) #on2eren4e #o((ittee o2 +(en&(ents +n&
(o&i2i4+tions to &is+*reein* %ro!isions in ,i))s t1+t 1+!e ,een +4te& "%on ,5
,ot1 1o"ses o2 #on*ress is %ro1i,ite&.

'. R.A. /o. 0112 Does /ot +iolate Article +3,
Section "9 o$ the 'onstitution on )*clusive
Ori.ination o$ Revenue Bills


#o(in* to t1e iss"e o2 t1e !+)i&it5 o2 t1e +(en&(ents (+&e re*+r&in*
t1e NIR# %ro!isions on 4or%or+te in4o(e t+'es +n& %er4ent+*e, e'4ise
t+'es. Petitioners re2er to t1e 2o))o<in* %ro!isions, to <it:

Se4tion
.8

R+tes o2 In4o(e T+' on Do(esti4
#or%or+tion
.97A:7-: T+' on Resi&ent ;orei*n #or%or+tion
.97B:7-: Inter-4or%or+te Di!i&en&s
@D7B:7-: Inter-4or%or+te Di!i&en&s
--E 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
-D9 E'4ise T+' on (+n"2+4t"re& oi)s +n& ot1er
2"e)s
-0- E'4ise T+' on (iner+) %ro&"4ts
.@E 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 -/E, -/8, -/9, --/ +n& --D
o2 t1e NIR#, <1i)e $o"se Bi)) No. @8/0 %ro%ose& +(en&(ents on)5 to
Se4tions -/E, -/8,-/9, -/?, --/ +n& --- o2 t1e NIR#M t1"s, t1e ot1er
se4tions o2 t1e NIR# <1i41 t1e Sen+te +(en&e& ,"t <1i41 +(en&(ents
<ere not 2o"n& in t1e $o"se ,i))s +re not inten&e& to ,e +(en&e& ,5 t1e
$o"se o2 Re%resent+ti!es. $en4e, t1e5 +r*"e t1+t sin4e t1e %ro%ose&
+(en&(ents &i& not ori*in+te 2ro( t1e $o"se, s"41 +(en&(ents +re +
!io)+tion o2 Arti4)e VI, Se4tion .D o2 t1e #onstit"tion.

T1e +r*"(ent &oes not 1o)& <+ter.

Arti4)e VI, Se4tion .D o2 t1e #onstit"tion re+&s:

Se4. .D. A)) +%%ro%ri+tion, re!en"e or t+ri22 ,i))s, ,i))s +"t1oriKin*
in4re+se o2 t1e %",)i4 &e,t, ,i))s o2 )o4+) +%%)i4+tion, +n& %ri!+te ,i))s s1+))
ori*in+te e'4)"si!e)5 in t1e $o"se o2 Re%resent+ti!es ,"t t1e Sen+te (+5
%ro%ose or 4on4"r <it1 +(en&(ents.


In t1e %resent 4+ses, %etitioners +&(it t1+t it <+s in&ee& $o"se Bi))
Nos. @000 +n& @8/0 t1+t initi+te& t1e (o!e 2or +(en&in* %ro!isions o2 t1e
NIR# &e+)in* (+in)5 <it1 t1e !+)"e-+&&e& t+'. U%on tr+ns(itt+) o2 s+i&
$o"se ,i))s to t1e Sen+te, t1e Sen+te 4+(e o"t <it1 Sen+te Bi)) No. -?0/
%ro%osin* +(en&(ents not on)5 to NIR# %ro!isions on t1e !+)"e-+&&e& t+'
,"t +)so +(en&(ents to NIR# %ro!isions on ot1er =in&s o2 t+'es. Is t1e
intro&"4tion ,5 t1e Sen+te o2 %ro!isions not &e+)in* &ire4t)5 <it1 t1e !+)"e-
+&&e& t+', <1i41 is t1e on)5 =in& o2 t+' ,ein* +(en&e& in t1e $o"se ,i))s,
sti)) <it1in t1e %"r!ie< o2 t1e 4onstit"tion+) %ro!ision +"t1oriKin* t1e Sen+te
to %ro%ose or 4on4"r <it1 +(en&(ents to + re!en"e ,i)) t1+t ori*in+te& 2ro(
t1e $o"seJ

T1e 2ore*oin* 6"estion 1+& ,een s6"+re)5 +ns<ere& in t1e #olentino
4+se, <1erein t1e #o"rt 1e)&, t1"s:

. . . To ,e*in <it1, it is not t1e )+< P ,"t t1e re!en"e ,i)) P <1i41 is
re6"ire& ,5 t1e #onstit"tion to Fori*in+te e'4)"si!e)5G in t1e $o"se o2
Re%resent+ti!es. It is i(%ort+nt to e(%1+siKe t1is, ,e4+"se + ,i))
ori*in+tin* in t1e $o"se (+5 "n&er*o s"41 e'tensi!e 41+n*es in t1e
Sen+te t1+t t1e res")t (+5 ,e + re<ritin* o2 t1e <1o)e. . . . At t1is %oint,
<1+t is i(%ort+nt to note is t1+t, +s + res")t o2 t1e Sen+te +4tion, + &istin4t
,i)) (+5 ,e %ro&"4e&. To 52523 39a3 a reCe8e 23a383e > a! o3 oly
39e 45ll I95B9 5535a3e! 39e le752la35Ce 1roBe22 B8lm5a357 5 39e
eaB3me3 o: 39e laI > m823 28423a35ally 4e 39e 2ame a2 39e )o82e
45ll Io8l! 4e 3o !ey 39e Sea3e62 1oIer o3 oly 3o ;)on)ur -ith
a'end'ents< 483 al2o 3o ;%ro%ose a'end'ents.< It <o")& ,e to !io)+te
t1e 4oe6"+)it5 o2 )e*is)+ti!e %o<er o2 t1e t<o 1o"ses o2 #on*ress +n& in
2+4t (+=e t1e $o"se s"%erior to t1e Sen+te.

>

>G5Ce# 39e# 39e 1oIer o: 39e Sea3e 3o 1ro1o2e
ame!me32# 39e Sea3e Ba 1ro1o2e 532 oI Cer25o eCe I539 re21eB3
3o 45ll2 I95B9 are reL85re! 4y 39e Co2353835o 3o or575a3e 5 39e
)o82e.
. . .

In&ee&, <1+t t1e #onstit"tion si(%)5 (e+ns is t1+t t1e initi+ti!e 2or
2i)in* re!en"e, t+ri22 or t+' ,i))s, ,i))s +"t1oriKin* +n in4re+se o2 t1e %",)i4
&e,t, %ri!+te ,i))s +n& ,i))s o2 )o4+) +%%)i4+tion ("st 4o(e 2ro( t1e $o"se
o2 Re%resent+ti!es on t1e t1eor5 t1+t, e)e4te& +s t1e5 +re 2ro( t1e &istri4ts,
39e mem4er2 o: 39e )o82e Ba 4e eE1eB3e! 3o 4e more 2e2535Ce 3o 39e
loBal ee!2 a! 1ro4lem2. O 39e o39er 9a!# 39e 2ea3or2# I9o are
eleB3e! a3 lar7e# are eE1eB3e! 3o a11roaB9 39e 2ame 1ro4lem2 :rom 39e
a35oal 1er21eB35Ce. Bo39 C5eI2 are 39ere4y ma!e 3o 4ear o 39e
eaB3me3 o: 28B9 laI2.
A@@B
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 <+s +4tin* <it1in
its
4onstit"tion+) %o<er to intro&"4e +(en&(ents to t1e $o"se ,i)) <1en it
in4)"&e& %ro!isions in Sen+te Bi)) No. -?0/ +(en&in* 4or%or+te in4o(e
t+'es, %er4ent+*e, e'4ise +n& 2r+n41ise t+'es. Veri)5, Arti4)e VI, Se4tion .D
o2 t1e #onstit"tion &oes not 4ont+in +n5 %ro1i,ition or )i(it+tion on t1e
e'tent o2 t1e +(en&(ents t1+t (+5 ,e intro&"4e& ,5 t1e Sen+te to t1e $o"se
re!en"e ,i)).

;"rt1er(ore, t1e +(en&(ents intro&"4e& ,5 t1e Sen+te to t1e NIR#
%ro!isions t1+t 1+& not ,een to"41e& in t1e $o"se ,i))s +re sti)) in
2"rt1er+n4e o2 t1e intent o2 t1e $o"se in initi+tin* t1e s",3e4t re!en"e ,i))s.
T1e E'%)+n+tor5 Note o2 $o"se Bi)) No. -DE9, t1e !er5 2irst $o"se ,i))
intro&"4e& on t1e 2)oor, <1i41 <+s )+ter s",stit"te& ,5 $o"se Bi)) No. @000,
st+te&:

One o2 t1e 41+))en*es 2+4e& ,5 t1e %resent +&(inistr+tion is t1e
"r*ent +n& &+"ntin* t+s= o2 so)!in* t1e 4o"ntr5Hs serio"s 2in+n4i+)
%ro,)e(s. To &o t1is, *o!ern(ent e'%en&it"res ("st ,e stri4t)5 (onitore&
+n& 4ontro))e& +n& re!en"es ("st ,e si*ni2i4+nt)5 in4re+se&. T1is (+5 ,e
e+sier s+i& t1+n &one, ,"t o"r 2is4+) +"t1orities +re sti)) o%ti(isti4 t1e
*o!ern(ent <i)) ,e o%er+tin* on + ,+)+n4e& ,"&*et ,5 t1e 5e+r .//?. In
2+4t, se!er+) (e+s"res t1+t <i)) res")t to si*ni2i4+nt e'%en&it"re s+!in*s
1+!e ,een i&enti2ie& ,5 t1e +&(inistr+tion. I3 52 2811or3e! I539 a
Bre!54le 1aBMa7e o: reCe8e mea28re2 39a3 5Bl8!e mea28re2 3o
5m1roCe 3aE a!m5523ra35o a! Bo3rol 39e leaMa7e2 5 reCe8e2 :rom
5Bome 3aEe2 a! 39e Cal8e-a!!e! 3aE ("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 +)) +4=no<)e&*e& t1+t on to% o2 o"r +*en&+ ("st ,e t1e
restor+tion o2 t1e 1e+)t1 o2 o"r 2is4+) s5ste(.

In or&er to 4onsi&er+,)5 )o<er t1e 4onso)i&+te& %",)i4 se4tor
&e2i4it +n& e!ent"+))5 +41ie!e + ,+)+n4e& ,"&*et ,5 t1e 5e+r .//?, Ie
ee! 3o 2e5Oe I5!oI2 o: o11or38535e2 I95B9 m5793 2eem 1o57a3 5
39e 4e7557# 483 5 39e lo7 r8 1roCe e::eB35Ce a! 4ee:5B5al 3o 39e
oCerall 23a382 o: o8r eBoomy. Oe 28B9 o11or3853y 52 a reC5eI o:
eE52357 3aE ra3e2# eCal8a357 39e releCaBe 75Ce o8r 1re2e3
Bo!535o2.
A@DB
7E(%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 siKe+,)e re!en"es 2or t1e *o!ern(ent
to s"%%)e(ent o"r 4o"ntr5Hs 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 <ere tr+ns(itte& to t1e Sen+te,
t1e )+tter, +%%ro+41in* t1e (e+s"res 2ro( t1e %oint o2 n+tion+) %ers%e4ti!e,
4+n intro&"4e +(en&(ents <it1in t1e %"r%oses o2 t1ose ,i))s. It 4+n %ro!i&e
2or <+5s t1+t <o")& so2ten t1e i(%+4t o2 t1e VAT (e+s"re on t1e 4ons"(er,
i.e., ,5 &istri,"tin* t1e ,"r&en +4ross +)) se4tors inste+& o2 %"ttin* it entire)5
on t1e s1o")&ers o2 t1e 4ons"(ers. T1e s%onsors1i% s%ee41 o2 Sen. R+)%1
Re4to on <15 t1e %ro!isions on in4o(e t+' on 4or%or+tion <ere in4)"&e& is
<ort1 6"otin*:

A)) in +)), t1e %ro%os+) o2 t1e Sen+te #o((ittee on C+5s +n&
Me+ns <i)) r+ise PED.@ ,i))ion in +&&ition+) re!en"es +nn"+))5 e!en <1i)e
,5 (iti*+tin* %ri4es o2 %o<er, ser!i4es +n& %etro)e"( %ro&"4ts.

$o<e!er, not +)) o2 t1is <i)) ,e <r"n* o"t o2 VAT. In 2+4t, on)5
PD9.8 ,i))ion +(o"nt is 2ro( t1e VAT on t<e)!e *oo&s +n& ser!i4es. T1e
rest o2 t1e t+, P P-/.0 ,i))ion- <i)) ,e %i4=e& ,5 4or%or+tions.

C1+t <e t1ere2ore %res4ri,e is + ,"r&en s1+rin* ,et<een 4or%or+te
P1i)i%%ines +n& t1e 4ons"(er. C15 s1o")& t1e )+tter ,e+r +)) t1e %+inJ
C15 s1o")& t1e 2is4+) s+)!+tion ,e on)5 on t1e ,"r&en o2 t1e 4ons"(erJ

T1e 4or%or+te <or)&Hs e6"it5 is in 2or( o2 t1e in4re+se in t1e
4or%or+te in4o(e t+' 2ro( @. to @0 %er4ent, ,"t "% to .//9 on)5. T1is <i))
r+ise P-/.0 ,i))ion + 5e+r. A2ter t1+t, t1e r+te <i)) s)i&e ,+4=, not to its o)&
r+te o2 @. %er4ent, ,"t t<o not41es )o<er, to @/ %er4ent.

#)e+r)5, <e +re te))in* t1ose <it1 t1e 4+%+4it5 to %+5, 4or%or+tions,
to ,e+r <it1 t1is e(er*en45 %ro!ision t1+t <i)) ,e in e22e4t 2or -,.// &+5s,
<1i)e <e %"t o"r 2is4+) 1o"se in or&er. T1is 2is4+) (e&i4ine <i)) 1+!e +n
e'%ir5 &+te.

;or t1eir +ssist+n4e, + re<+r& o2 t+' re&"4tion +<+its t1e(. Ce
inten& to =ee% t1e )en*t1 o2 t1eir s+4ri2i4e ,rie2. Ce <o")& )i=e to +ss"re
t1e( t1+t not ,e4+"se t1ere is + )i*1t +t t1e en& o2 t1e t"nne), t1is
*o!ern(ent <i)) =ee% on (+=in* t1e t"nne) )on*.

T1e res%onsi,i)it5 <i)) not rest so)e)5 on t1e <e+r5 s1o")&ers o2 t1e
s(+)) (+n. Bi* ,"siness <i)) ,e t1ere to s1+re t1e ,"r&en.
A@0B



As t1e #o"rt 1+s s+i&, t1e Sen+te 4+n %ro%ose +(en&(ents +n& in 2+4t,
t1e +(en&(ents (+&e on %ro!isions in t1e t+' on in4o(e o2 4or%or+tions +re
*er(+ne to t1e %"r%ose o2 t1e 1o"se ,i))s <1i41 is to r+ise re!en"es 2or t1e
*o!ern(ent.


Li=e<ise, t1e #o"rt 2in&s t1e se4tions re2errin* to ot1er %er4ent+*e
+n& e'4ise t+'es *er(+ne to t1e re2or(s to t1e VAT s5ste(, +s t1ese se4tions
<o")& 4"s1ion t1e e22e4ts o2 VAT on 4ons"(ers. #onsi&erin* t1+t 4ert+in
*oo&s +n& ser!i4es <1i41 <ere s",3e4t to %er4ent+*e t+' +n& e'4ise t+'
<o")& no )on*er ,e VAT-e'e(%t, t1e 4ons"(er <o")& ,e ,"r&ene& (ore +s
t1e5 <o")& ,e %+5in* t1e VAT in +&&ition to t1ese t+'es. T1"s, t1ere is +
nee& to +(en& t1ese se4tions to so2ten t1e i(%+4t o2 VAT. A*+in, in 1is
s%onsors1i% s%ee41, Sen. Re4to s+i&:

$o<e!er, 2or %o<er %)+nts t1+t r"n on oi), <e <i)) re&"4e to Kero
t1e %resent e'4ise t+' on ,"n=er 2"e), to )essen t1e e22e4t o2 + VAT on t1is
%ro&"4t.

;or e)e4tri4 "ti)ities )i=e Mer+)4o, <e <i)) <i%e o"t t1e 2r+n41ise
t+' in e'41+n*e 2or + VAT.

An& in t1e 4+se o2 %etro)e"(, <1i)e <e <i)) )e!5 t1e VAT on oi)
%ro&"4ts, so +s not to &estro5 t1e VAT 41+in, <e <i)) 1o<e!er ,rin* &o<n
t1e e'4ise t+' on so4i+))5 sensiti!e %ro&"4ts s"41 +s &iese), ,"n=er, 2"e)
+n& =erosene.

. . .

C1+t &o +)) t1ese e'er4ises %oint toJ T1ese +re not 4ontortions o2
*i!in* to t1e )e2t 1+n& <1+t <+s t+=en 2ro( t1e ri*1t. R+t1er, t1ese s%r+n*
2ro( o"r 4on4ern o2 so2tenin* t1e i(%+4t o2 VAT, so t1+t t1e %eo%)e 4+n
4"s1ion t1e ,)o< o2 1i*1er %ri4es t1e5 <i)) 1+!e to %+5 +s + res")t o2 VAT.
A@EB


T1e ot1er se4tions +(en&e& ,5 t1e Sen+te %ert+ine& to (+tters o2 t+'
+&(inistr+tion <1i41 +re ne4ess+r5 2or t1e i(%)e(ent+tion o2 t1e 41+n*es in
t1e VAT s5ste(.

To reiter+te, t1e se4tions intro&"4e& ,5 t1e Sen+te +re *er(+ne to t1e
s",3e4t (+tter +n& %"r%oses o2 t1e 1o"se ,i))s, <1i41 is to s"%%)e(ent o"r
4o"ntr5Hs 2is4+) &e2i4it, +(on* ot1ers. T1"s, t1e Sen+te +4te& <it1in its
%o<er to %ro%ose t1ose +(en&(ents.

SUBSTANTI"E ISSUES
I.
C1et1er Se4tions D, 0 +n& E o2 R.A. No. ?@@8, +(en&in* Se4tions -/E, -/8
+n& -/9 o2 t1e NIR#, !io)+te t1e 2o))o<in* %ro!isions o2 t1e #onstit"tion:

+. Arti4)e VI, Se4tion .97-:, +n&
,. Arti4)e VI, Se4tion .97.:
A. /o Undue Dele.ation o$ :e.islative
Po;er


Petitioners ABAKADA GURO P+rt5 List, et al., Pi(ente), Jr., et al.,
+n& Es4"&ero, et al. 4onten& in 4o((on t1+t Se4tions D, 0 +n& E o2 R.A. No.
?@@8, +(en&in* Se4tions -/E, -/8 +n& -/9, res%e4ti!e)5, o2 t1e NIR# *i!in*
t1e Presi&ent t1e stand-by authority to r+ise t1e VAT r+te 2ro( -/I to -.I
<1en + 4ert+in 4on&ition is (et, 4onstit"tes "n&"e &e)e*+tion o2 t1e
)e*is)+ti!e %o<er to t+'.

T1e +ss+i)e& %ro!isions re+& +s 2o))o<s:

SE#. D. Se4. -/E o2 t1e s+(e #o&e, +s +(en&e&, is 1ere,5 2"rt1er
+(en&e& to re+& +s 2o))o<s:

SE#. -/E. V+)"e-A&&e& T+' on S+)e o2 Goo&s or Pro%erties. P

7A: R+te +n& B+se o2 T+'. P T1ere s1+)) ,e )e!ie&,
+ssesse& +n& 4o))e4te& on e!er5 s+)e, ,+rter or e'41+n*e o2
*oo&s or %ro%erties, + !+)"e-+&&e& t+' e6"i!+)ent to ten
%er4ent 7-/I: o2 t1e *ross se))in* %ri4e or *ross !+)"e in
(one5 o2 t1e *oo&s or %ro%erties so)&, ,+rtere& or
e'41+n*e&, s"41 t+' to ,e %+i& ,5 t1e se))er or tr+ns2eror:
1roC5!e!# 39a3 39e Pre25!e3# 81o 39e reBomme!a35o
o: 39e SeBre3ary o: F5aBe# 29all# e::eB35Ce Ja8ary $#
.''%# ra52e 39e ra3e o: Cal8e-a!!e! 3aE 3o 3IelCe 1erBe3
($.P)# a:3er ay o: 39e :olloI57 Bo!535o2 9a2 4ee
2a352:5e!.

(5) Cal8e-a!!e! 3aE BolleB35o a2 a 1erBe3a7e o:
Gro22 Dome235B Pro!8B3 (GDP) o: 39e 1reC5o82
year eEBee!2 3Io a! :o8r-:5:39 1erBe3 (. ?Q(P)
or

(55) a35oal 7oCerme3 !e:5B53 a2 a 1erBe3a7e o:
GDP o: 39e 1reC5o82 year eEBee!2 oe a! oe-
9al: 1erBe3 ($ RP).

SE#. 0. Se4tion -/8 o2 t1e s+(e #o&e, +s +(en&e&, is 1ere,5
2"rt1er +(en&e& to re+& +s 2o))o<s:

SE#. -/8. V+)"e-A&&e& T+' on I(%ort+tion o2 Goo&s. P
7A: In Gener+). P T1ere s1+)) ,e )e!ie&, +ssesse& +n&
4o))e4te& on e!er5 i(%ort+tion o2 *oo&s + !+)"e-+&&e& t+'
e6"i!+)ent to ten %er4ent 7-/I: ,+se& on t1e tot+) !+)"e
"se& ,5 t1e B"re+" o2 #"sto(s in &eter(inin* t+ri22 +n&
4"sto(s &"ties, %)"s 4"sto(s &"ties, e'4ise t+'es, i2 +n5,
+n& ot1er 41+r*es, s"41 t+' to ,e %+i& ,5 t1e i(%orter %rior
to t1e re)e+se o2 s"41 *oo&s 2ro( 4"sto(s 4"sto&5:
Pro!i&e&, T1+t <1ere t1e 4"sto(s &"ties +re &eter(ine& on
t1e ,+sis o2 t1e 6"+ntit5 or !o)"(e o2 t1e *oo&s, t1e !+)"e-
+&&e& t+' s1+)) ,e ,+se& on t1e )+n&e& 4ost %)"s e'4ise
t+'es, i2 +n5: 1roC5!e!# :8r39er# 39a3 39e Pre25!e3# 81o
39e reBomme!a35o o: 39e SeBre3ary o: F5aBe# 29all#
e::eB35Ce Ja8ary $# .''%# ra52e 39e ra3e o: Cal8e-a!!e!
3aE 3o 3IelCe 1erBe3 ($.P) a:3er ay o: 39e :olloI57
Bo!535o2 9a2 4ee 2a352:5e!.

(5) Cal8e-a!!e! 3aE BolleB35o a2 a 1erBe3a7e o:
Gro22 Dome235B Pro!8B3 (GDP) o: 39e 1reC5o82
year eEBee!2 3Io a! :o8r-:5:39 1erBe3 (. ?Q(P)
or
(55) a35oal 7oCerme3 !e:5B53 a2 a 1erBe3a7e o:
GDP o: 39e 1reC5o82 year eEBee!2 oe a! oe-
9al: 1erBe3 ($ RP).

SE#. E. Se4tion -/9 o2 t1e s+(e #o&e, +s +(en&e&, is 1ere,5
2"rt1er +(en&e& to re+& +s 2o))o<s:

SE#. -/9. V+)"e-+&&e& T+' on S+)e o2 Ser!i4es +n& Use or
Le+se o2 Pro%erties P

7A: R+te +n& B+se o2 T+'. P T1ere s1+)) ,e )e!ie&,
+ssesse& +n& 4o))e4te&, + !+)"e-+&&e& t+' e6"i!+)ent to ten
%er4ent 7-/I: o2 *ross re4ei%ts &eri!e& 2ro( t1e s+)e or
e'41+n*e o2 ser!i4es: 1roC5!e!# 39a3 39e Pre25!e3# 81o
39e reBomme!a35o o: 39e SeBre3ary o: F5aBe# 29all#
e::eB35Ce Ja8ary $# .''%# ra52e 39e ra3e o: Cal8e-a!!e!
3aE 3o 3IelCe 1erBe3 ($.P)# a:3er ay o: 39e :olloI57
Bo!535o2 9a2 4ee 2a352:5e!.

(5) Cal8e-a!!e! 3aE BolleB35o a2 a 1erBe3a7e o:
Gro22 Dome235B Pro!8B3 (GDP) o: 39e 1reC5o82
year eEBee!2 3Io a! :o8r-:5:39 1erBe3 (. ?Q(P)
or
(55) a35oal 7oCerme3 !e:5B53 a2 a 1erBe3a7e o:
GDP o: 39e 1reC5o82 year eEBee!2 oe a! oe-
9al: 1erBe3 ($ RP). 7E(%1+sis s"%%)ie&:


Petitioners +))e*e t1+t t1e *r+nt o2 t1e stand-by authority to t1e
Presi&ent to in4re+se t1e VAT r+te is + !irt"+) +,&i4+tion ,5 #on*ress o2 its
e'4)"si!e %o<er to t+' ,e4+"se s"41 &e)e*+tion is not <it1in t1e %"r!ie< o2
Se4tion .9 7.:, Arti4)e VI o2 t1e #onstit"tion, <1i41 %ro!i&es:

T1e #on*ress (+5, ,5 )+<, +"t1oriKe t1e Presi&ent to 2i' <it1in
s%e4i2ie& )i(its, +n& (+5 i(%ose, t+ri22 r+tes, i(%ort +n& e'%ort 6"ot+s,
tonn+*e +n& <1+r2+*e &"es, +n& ot1er &"ties or i(%osts <it1in t1e
2r+(e<or= o2 t1e n+tion+) &e!e)o%(ent %ro*r+( o2 t1e *o!ern(ent.


T1e5 +r*"e t1+t t1e VAT is + t+' )e!ie& on t1e s+)e, ,+rter or e'41+n*e
o2 *oo&s +n& %ro%erties +s <e)) +s on t1e s+)e or e'41+n*e o2 ser!i4es, <1i41
4+nnot ,e in4)"&e& <it1in t1e %"r!ie< o2 t+ri22s "n&er t1e e'e(%te&
&e)e*+tion +s t1e )+tter re2ers to 4"sto(s &"ties, to))s or tri,"te %+5+,)e "%on
(er41+n&ise to t1e *o!ern(ent +n& "s"+))5 i(%ose& on *oo&s or
(er41+n&ise i(%orte& or e'%orte&.

Petitioners ABAKADA GURO P+rt5 List, et al., 2"rt1er 4onten& t1+t
&e)e*+tin* to t1e Presi&ent t1e )e*is)+ti!e %o<er to t+' is 4ontr+r5 to
re%",)i4+nis(. T1e5 insist t1+t +44o"nt+,i)it5, res%onsi,i)it5 +n&
tr+ns%+ren45 s1o")& &i4t+te t1e +4tions o2 #on*ress +n& t1e5 s1o")& not %+ss
to t1e Presi&ent t1e &e4ision to i(%ose t+'es. T1e5 +)so +r*"e t1+t t1e )+<
+)so e22e4ti!e)5 n"))i2ie& t1e Presi&entHs %o<er o2 4ontro), <1i41 in4)"&es t1e
+"t1orit5 to set +si&e +n& n"))i25 t1e +4ts o2 1er s",or&in+tes )i=e t1e
Se4ret+r5 o2 ;in+n4e, ,5 (+n&+tin* t1e 2i'in* o2 t1e t+' r+te ,5 t1e Presi&ent
"%on t1e re4o((en&+tion o2 t1e Se4ret+r5 o2 ;in+n4e.

Petitioners Pi(ente), et al. +!er t1+t t1e Presi&ent 1+s +(%)e %o<ers to
4+"se, in2)"en4e or 4re+te t1e 4on&itions %ro!i&e& ,5 t1e )+< to ,rin* +,o"t
eit1er or ,ot1 t1e 4on&itions %re4e&ent.

On t1e ot1er 1+n&, %etitioners Es4"&ero, et al. 2in& ,iK+rre +n&
re!o)tin* t1e sit"+tion t1+t t1e i(%osition o2 t1e -.I r+te <o")& ,e s",3e4t
to t1e <1i( o2 t1e Se4ret+r5 o2 ;in+n4e, +n "ne)e4te& ,"re+"4r+t, 4ontr+r5 to
t1e %rin4i%)e o2 no t+'+tion <it1o"t re%resent+tion. T1e5 s",(it t1+t t1e
Se4ret+r5 o2 ;in+n4e is not (+n&+te& to *i!e + 2+!or+,)e re4o((en&+tion
+n& 1e (+5 not e!en *i!e 1is re4o((en&+tion. Moreo!er, t1e5 +))e*e t1+t
no *"i&in* st+n&+r&s +re %ro!i&e& in t1e )+< on <1+t ,+sis +n& +s to 1o< 1e
<i)) (+=e 1is re4o((en&+tion. T1e5 4)+i(, nonet1e)ess, t1+t +n5
re4o((en&+tion o2 t1e Se4ret+r5 o2 ;in+n4e 4+n e+si)5 ,e ,r"s1e& +si&e ,5
t1e Presi&ent sin4e t1e 2or(er is + (ere +)ter e*o o2 t1e )+tter, s"41 t1+t,
")ti(+te)5, it is t1e Presi&ent <1o &e4i&es <1et1er to i(%ose t1e in4re+se&
t+' r+te or not.

A ,rie2 &is4o"rse on t1e %rin4i%)e o2 non-&e)e*+tion o2 %o<ers is
instr"4ti!e.

T1e %rin4i%)e o2 se%+r+tion o2 %o<ers or&+ins t1+t e+41 o2 t1e t1ree
*re+t ,r+n41es o2 *o!ern(ent 1+s e'4)"si!e 4o*niK+n4e o2 +n& is s"%re(e in
(+tters 2+))in* <it1in its o<n 4onstit"tion+))5 +))o4+te& s%1ere.
A@8B
A
)o*i4+)
4oro))+r5 to t1e &o4trine o2 se%+r+tion o2 %o<ers is t1e %rin4i%)e o2 non-
&e)e*+tion o2 %o<ers, +s e'%resse& in t1e L+tin (+'i(: potestas dele.ata
non dele.ari potest <1i41 (e+ns F<1+t 1+s ,een &e)e*+te&, 4+nnot ,e
&e)e*+te&.G
A@9B
T1is &o4trine is ,+se& on t1e et1i4+) %rin4i%)e t1+t s"41 +s
&e)e*+te& %o<er 4onstit"tes not on)5 + ri*1t ,"t + &"t5 to ,e %er2or(e& ,5
t1e &e)e*+te t1ro"*1 t1e instr"(ent+)it5 o2 1is o<n 3"&*(ent +n& not
t1ro"*1 t1e inter!enin* (in& o2 +not1er.
A@?B


Cit1 res%e4t to t1e Le*is)+t"re, Se4tion - o2 Arti4)e VI o2 t1e
#onstit"tion %ro!i&es t1+t Fthe :e.islative po;er shall be vested in the
'on.ress o$ the Philippines ;hich shall consist o$ a Senate and a <ouse o$
Representatives.G T1e %o<ers <1i41 #on*ress is %ro1i,ite& 2ro( &e)e*+tin*
+re t1ose <1i41 +re stri4t)5, or in1erent)5 +n& e'4)"si!e)5, )e*is)+ti!e. P"re)5
)e*is)+ti!e %o<er, <1i41 4+n ne!er ,e &e)e*+te&, 1+s ,een &es4ri,e& +s t1e
a839or53y 3o maMe a Bom1le3e laI > Bom1le3e a2 3o 39e 35me I9e 53 29all
3aMe e::eB3 a! a2 3o I9om 53 29all 4e a11l5Ba4le > a! 3o !e3erm5e 39e
eE1e!5eBy o: 532 eaB3met.
AD/B
T1"s, t1e r")e is t1+t in or&er t1+t + 4o"rt
(+5 ,e 3"sti2ie& in 1o)&in* + st+t"te "n4onstit"tion+) +s + &e)e*+tion o2
)e*is)+ti!e %o<er, it ("st +%%e+r t1+t t1e %o<er in!o)!e& is %"re)5 )e*is)+ti!e
in n+t"re P t1+t is, one +%%ert+inin* e'4)"si!e)5 to t1e )e*is)+ti!e
&e%+rt(ent. It is t1e n+t"re o2 t1e %o<er, +n& not t1e )i+,i)it5 o2 its "se or
t1e (+nner o2 its e'er4ise, <1i41 &eter(ines t1e !+)i&it5 o2 its &e)e*+tion.

Nonet1e)ess, t1e *ener+) r")e ,+rrin* &e)e*+tion o2 )e*is)+ti!e %o<ers
is s",3e4t to t1e 2o))o<in* re4o*niKe& )i(it+tions or e'4e%tions:

7-: De)e*+tion o2 t+ri22 %o<ers to t1e Presi&ent "n&er Se4tion .9 7.:
o2 Arti4)e VI o2 t1e #onstit"tionM
7.: De)e*+tion o2 e(er*en45 %o<ers to t1e Presi&ent "n&er Se4tion .@
7.: o2 Arti4)e VI o2 t1e #onstit"tionM
7@: De)e*+tion to t1e %eo%)e +t )+r*eM
7D: De)e*+tion to )o4+) *o!ern(entsM +n&
70: De)e*+tion to +&(inistr+ti!e ,o&ies.


In e!er5 4+se o2 %er(issi,)e &e)e*+tion, t1ere ("st ,e + s1o<in* t1+t
t1e &e)e*+tion itse)2 is !+)i&. It is !+)i& on)5 i2 t1e )+< 7+: is 4o(%)ete in
itse)2, settin* 2ort1 t1erein t1e %o)i45 to ,e e'e4"te&, 4+rrie& o"t, or
i(%)e(ente& ,5 t1e &e)e*+teM
AD-B
+n& 7,: 2i'es + st+n&+r& R t1e )i(its o2
<1i41 +re s"22i4ient)5 &eter(in+te +n& &eter(in+,)e R to <1i41 t1e
&e)e*+te ("st 4on2or( in t1e %er2or(+n4e o2 1is 2"n4tions.
AD.B
A s"22i4ient
st+n&+r& is one <1i41 &e2ines )e*is)+ti!e %o)i45, (+r=s its )i(its, (+%s o"t
its ,o"n&+ries +n& s%e4i2ies t1e %",)i4 +*en45 to +%%)5 it. It in&i4+tes t1e
4ir4"(st+n4es "n&er <1i41 t1e )e*is)+ti!e 4o((+n& is to ,e e22e4te&.
AD@B
Bot1 tests +re inten&e& to %re!ent + tot+) tr+ns2eren4e o2 )e*is)+ti!e +"t1orit5
to t1e &e)e*+te, <1o is not +))o<e& to ste% into t1e s1oes o2 t1e )e*is)+t"re
+n& e'er4ise + %o<er essenti+))5 )e*is)+ti!e.
ADDB


In People vs. +era,
AD0B
t1e #o"rt, t1ro"*1 e(inent J"sti4e Jose P.
L+"re), e'%o"n&e& on t1e 4on4e%t +n& e'tent o2 &e)e*+tion o2 %o<er in t1is
<ise:

In testin* <1et1er + st+t"te 4onstit"tes +n "n&"e &e)e*+tion o2
)e*is)+ti!e %o<er or not, it is "s"+) to in6"ire <1et1er t1e st+t"te <+s
4o(%)ete in +)) its ter(s +n& %ro!isions <1en it )e2t t1e 1+n&s o2 t1e
)e*is)+t"re so t1+t not1in* <+s )e2t to t1e 3"&*(ent o2 +n5 ot1er +%%ointee
or &e)e*+te o2 t1e )e*is)+t"re.

. . .

QT9e 3r8e !5235B35o6# 2ay2 J8!7e Raey# S52 4e3Iee 39e
!ele7a35o o: 1oIer 3o maMe 39e laI# I95B9 eBe22ar5ly 5ColCe2 a
!52Bre35o a2 3o I9a3 53 29all 4e# a! Bo:err57 a a839or53y or
!52Bre35o a2 3o 532 eEeB835o# 3o 4e eEerB52e! 8!er a! 5 18r28aBe
o: 39e laI. T9e :5r23 Bao3 4e !oe+ 3o 39e la33er o Cal5! o4JeB35o
Ba 4e ma!e.6

. . .

It is 4onten&e&, 1o<e!er, t1+t + )e*is)+ti!e +4t (+5 ,e (+&e to t1e
e22e4t +s )+< +2ter it )e+!es t1e 1+n&s o2 t1e )e*is)+t"re. It is tr"e t1+t )+<s
(+5 ,e (+&e e22e4ti!e on 4ert+in 4ontin*en4ies, +s ,5 %ro4)+(+tion o2 t1e
e'e4"ti!e or t1e +&o%tion ,5 t1e %eo%)e o2 + %+rti4")+r 4o(("nit5. In
C+5(+n !s. So"t1+r&, t1e S"%re(e #o"rt o2 t1e Unite& St+tes r")e& t1+t
t1e )e*is)+t"re (+5 &e)e*+te + %o<er not )e*is)+ti!e <1i41 it (+5 itse)2
ri*1t2"))5 e'er4ise. T9e 1oIer 3o a2Ber3a5 :aB32 52 28B9 a 1oIer I95B9
may 4e !ele7a3e!. T9ere 52 o3957 e22e35ally le752la35Ce 5
a2Ber3a557 39e eE523eBe o: :aB32 or Bo!535o2 a2 39e 4a252 o: 39e
3aM57 53o e::eB3 o: a laI. T9a3 52 a me3al 1roBe22 Bommo 3o all
4raB9e2 o: 39e 7oCerme3. Not<it1st+n&in* t1e +%%+rent ten&en45,
1o<e!er, to re)+' t1e r")e %ro1i,itin* &e)e*+tion o2 )e*is)+ti!e +"t1orit5 on
+44o"nt o2 t1e 4o(%)e'it5 +risin* 2ro( so4i+) +n& e4ono(i4 2or4es +t <or=
in t1is (o&ern in&"stri+) +*e, t1e ort1o&o' %rono"n4e(ent o2 J"&*e
#oo)e5 in 1is <or= on #onstit"tion+) Li(it+tions 2in&s rest+te(ent in
Pro2. Ci))o"*1,5Ss tre+tise on t1e #onstit"tion o2 t1e Unite& St+tes in t1e
2o))o<in* )+n*"+*e R s%e+=in* o2 &e4)+r+tion o2 )e*is)+ti!e %o<er to
+&(inistr+ti!e +*en4ies: T9e 1r5B51le I95B9 1erm532 39e le752la38re 3o
1roC5!e 39a3 39e a!m5523ra35Ce a7e3 may !e3erm5e I9e 39e
B5rB8m23aBe2 are 28B9 a2 reL85re 39e a11l5Ba35o o: a laI 52 !e:e!e!
81o 39e 7ro8! 39a3 a3 39e 35me 3952 a839or53y 52 7ra3e!# 39e r8le o:
184l5B 1ol5By# I95B9 52 39e e22eBe o: 39e le752la35Ce aB3# 52 !e3erm5e!
4y 39e le752la38re. I o39er Ior!2# 39e le752la38re# a2 53 52 532 !83y 3o !o#
!e3erm5e2 39a3# 8!er 75Ce B5rB8m23aBe2# Ber3a5 eEeB835Ce or
a!m5523ra35Ce aB35o 52 3o 4e 3aMe# a! 39a3# 8!er o39er
B5rB8m23aBe2# !5::ere3 or o aB35o a3 all 52 3o 4e 3aMe. @9a3 52 3982
le:3 3o 39e a!m5523ra35Ce o::5B5al 52 o3 39e le752la35Ce !e3erm5a35o o:
I9a3 184l5B 1ol5By !ema!2# 483 25m1ly 39e a2Ber3a5me3 o: I9a3 39e
:aB32 o: 39e Ba2e reL85re 3o 4e !oe aBBor!57 3o 39e 3erm2 o: 39e laI
4y I95B9 9e 52 7oCere!. T9e e::5B5eBy o: a AB3 a2 a !eBlara35o o:
le752la35Ce I5ll m823# o: Bo8r2e# Bome :rom Co7re22# 483 39e
a2Ber3a5me3 o: 39e Bo357eBy 81o I95B9 39e AB3 29all 3aMe e::eB3
may 4e le:3 3o 28B9 a7eB5e2 a2 53 may !e257a3e. T9e le752la38re# 39e#
may 1roC5!e 39a3 a laI 29all 3aMe e::eB3 81o 39e 9a11e57 o: :838re
21eB5:5e! Bo357eB5e2 leaC57 3o 2ome o39er 1er2o or 4o!y 39e
1oIer 3o !e3erm5e I9e 39e 21eB5:5e! Bo357eBy 9a2 ar52e.
7E(%1+sis s"%%)ie&:.
ADEB



In )du vs. )ricta,
AD8B
t1e #o"rt reiter+te&:

C1+t 4+nnot ,e &e)e*+te& is t1e +"t1orit5 "n&er t1e #onstit"tion to
(+=e )+<s +n& to +)ter +n& re%e+) t1e(M t1e test is t1e 4o(%)eteness o2 t1e
st+t"te in +)) its ter(s +n& %ro!isions <1en it )e+!es t1e 1+n&s o2 t1e
)e*is)+t"re. To &eter(ine <1et1er or not t1ere is +n "n&"e &e)e*+tion o2
)e*is)+ti!e %o<er, t1e in6"ir5 ("st ,e &ire4te& to t1e s4o%e +n&
&e2initeness o2 t1e (e+s"re en+4te&. T9e le752la35Ce !oe2 o3 a4!5Ba3e 532
:8B35o2 I9e 53 !e2Br54e2 I9a3 Jo4 m823 4e !oe# I9o 52 3o !o 53#
a! I9a3 52 39e 2Bo1e o: 952 a839or53y. ;or + 4o(%)e' e4ono(5, t1+t (+5
,e t1e on)5 <+5 in <1i41 t1e )e*is)+ti!e %ro4ess 4+n *o 2or<+r&. A
!5235B35o 9a2 r5793:8lly 4ee ma!e 4e3Iee !ele7a35o o: 1oIer 3o
maMe 39e laI2 I95B9 eBe22ar5ly 5ColCe2 a !52Bre35o a2 3o I9a3 53
29all 4e# I95B9 Bo2353835oally may o3 4e !oe# a! !ele7a35o o:
a839or53y or !52Bre35o a2 3o 532 eEeB835o 3o 4e eEerB52e! 8!er a! 5
18r28aBe o: 39e laI# 3o I95B9 o Cal5! o4JeB35o Ba 4e ma!e. T1e
#onstit"tion is t1"s not to ,e re*+r&e& +s &en5in* t1e )e*is)+t"re t1e
ne4ess+r5 reso"r4es o2 2)e'i,i)it5 +n& %r+4ti4+,i)it5. 7E(%1+sis s"%%)ie&:.
AD9B



#)e+r)5, t1e )e*is)+t"re (+5 &e)e*+te to e'e4"ti!e o22i4ers or ,o&ies
t1e %o<er to &eter(ine 4ert+in 2+4ts or 4on&itions, or t1e 1+%%enin* o2
4ontin*en4ies, on <1i41 t1e o%er+tion o2 + st+t"te is, ,5 its ter(s, (+&e to
&e%en&, ,"t t1e )e*is)+t"re ("st %res4ri,e s"22i4ient st+n&+r&s, %o)i4ies or
)i(it+tions on t1eir +"t1orit5.
AD?B
C1i)e t1e %o<er to t+' 4+nnot ,e &e)e*+te&
to e'e4"ti!e +*en4ies, &et+i)s +s to t1e en2or4e(ent +n& +&(inistr+tion o2 +n
e'er4ise o2 s"41 %o<er (+5 ,e )e2t to t1e(, in4)"&in* t1e %o<er to
&eter(ine t1e e'isten4e o2 2+4ts on <1i41 its o%er+tion &e%en&s.
A0/B


T1e r+tion+)e 2or t1is is t1+t t1e %re)i(in+r5 +s4ert+in(ent o2 2+4ts +s
,+sis 2or t1e en+4t(ent o2 )e*is)+tion is not o2 itse)2 + )e*is)+ti!e 2"n4tion,
,"t is si(%)5 +n4i))+r5 to )e*is)+tion. T1"s, t1e &"t5 o2 4orre)+tin*
in2or(+tion +n& (+=in* re4o((en&+tions is t1e =in& o2 s",si&i+r5 +4ti!it5
<1i41 t1e )e*is)+t"re (+5 %er2or( t1ro"*1 its (e(,ers, or <1i41 it (+5
&e)e*+te to ot1ers to %er2or(. Inte))i*ent )e*is)+tion on t1e 4o(%)i4+te&
%ro,)e(s o2 (o&ern so4iet5 is i(%ossi,)e in t1e +,sen4e o2 +44"r+te
in2or(+tion on t1e %+rt o2 t1e )e*is)+tors, +n& +n5 re+son+,)e (et1o& o2
se4"rin* s"41 in2or(+tion is %ro%er.
A0-B
T1e #onstit"tion +s + 4ontin"o"s)5
o%er+ti!e 41+rter o2 *o!ern(ent &oes not re6"ire t1+t #on*ress 2in& 2or itse)2
e!er5 2+4t "%on <1i41 it &esires to ,+se )e*is)+ti!e +4tion or t1+t it (+=e 2or
itse)2 &et+i)e& &eter(in+tions <1i41 it 1+s &e4)+re& to ,e %rere6"isite to
+%%)i4+tion o2 )e*is)+ti!e %o)i45 to %+rti4")+r 2+4ts +n& 4ir4"(st+n4es
i(%ossi,)e 2or #on*ress itse)2 %ro%er)5 to in!esti*+te.
A0.B


In t1e %resent 4+se, t1e 41+))en*e& se4tion o2 R.A. No. ?@@8 is t1e
4o((on proviso in Se4tions D, 0 +n& E <1i41 re+&s +s 2o))o<s:

T1+t t1e Presi&ent, "%on t1e re4o((en&+tion o2 t1e Se4ret+r5 o2
;in+n4e, s1+)), e22e4ti!e J+n"+r5 -, .//E, r+ise t1e r+te o2 !+)"e-+&&e& t+'
to t<e)!e %er4ent 7-.I:, +2ter +n5 o2 t1e 2o))o<in* 4on&itions 1+s ,een
s+tis2ie&:

7i: V+)"e-+&&e& t+' 4o))e4tion +s + %er4ent+*e o2
Gross Do(esti4 Pro&"4t 7GDP: o2 t1e %re!io"s 5e+r
e'4ee&s t<o +n& 2o"r-2i2t1 %er4ent 7. DL0I:M or

7ii: N+tion+) *o!ern(ent &e2i4it +s + %er4ent+*e o2
GDP o2 t1e %re!io"s 5e+r e'4ee&s one +n& one-1+)2 %er4ent
7- NI:.


T1e 4+se ,e2ore t1e #o"rt is not + &e)e*+tion o2 )e*is)+ti!e %o<er. It
is si(%)5 + &e)e*+tion o2 +s4ert+in(ent o2 2+4ts "%on <1i41 en2or4e(ent +n&
+&(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 -.I r+te e22e4ti!e J+n"+r5 -, .//E,
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 -.I r+te "%on 2+4t"+) (+tters o"tsi&e o2 t1e 4ontro) o2
t1e e'e4"ti!e.

No &is4retion <o")& ,e e'er4ise& ,5 t1e Presi&ent. $i*1)i*1tin* t1e
+,sen4e o2 &is4retion is t1e 2+4t t1+t t1e <or& shall is "se& in t1e 4o((on
proviso. T1e "se o2 t1e <or& shall 4onnotes + (+n&+tor5 or&er. Its "se in +
st+t"te &enotes +n i(%er+ti!e o,)i*+tion +n& is in4onsistent <it1 t1e i&e+ o2
&is4retion.
A0@B
C1ere t1e )+< is 4)e+r +n& "n+(,i*"o"s, it ("st ,e t+=en to
(e+n e'+4t)5 <1+t it s+5s, +n& 4o"rts 1+!e no 41oi4e ,"t to see to it t1+t t1e
(+n&+te is o,e5e&.
A0DB

T1"s, it is t1e (inisteri+) &"t5 o2 t1e Presi&ent to i((e&i+te)5 i(%ose
t1e -.I r+te "%on t1e e'isten4e o2 +n5 o2 t1e 4on&itions s%e4i2ie& ,5
#on*ress. T1is is + &"t5 <1i41 4+nnot ,e e!+&e& ,5 t1e Presi&ent. In+s("41
+s t1e )+< s%e4i2i4+))5 "ses t1e <or& shall, t1e e'er4ise o2 &is4retion ,5 t1e
Presi&ent &oes not 4o(e into %)+5. It is + 4)e+r &ire4ti!e to i(%ose t1e -.I
VAT r+te <1en t1e s%e4i2ie& 4on&itions +re %resent. T1e ti(e o2 t+=in* into
e22e4t o2 t1e -.I VAT r+te is ,+se& on t1e 1+%%enin* o2 + 4ert+in s%e4i2ie&
4ontin*en45, or "%on t1e +s4ert+in(ent o2 4ert+in 2+4ts or 4on&itions ,5 +
%erson or ,o&5 ot1er t1+n t1e )e*is)+t"re itse)2.

T1e #o"rt 2in&s no (erit to t1e 4ontention o2 %etitioners ABAKADA
GURO P+rt5 List, et +). t1+t t1e )+< e22e4ti!e)5 n"))i2ie& t1e Presi&entHs
%o<er o2 4ontro) o!er t1e Se4ret+r5 o2 ;in+n4e ,5 (+n&+tin* t1e 2i'in* o2
t1e t+' r+te ,5 t1e Presi&ent "%on t1e re4o((en&+tion o2 t1e Se4ret+r5 o2
;in+n4e. T1e #o"rt 4+nnot +)so s",s4ri,e to t1e %osition o2 %etitioners
Pi(ente), et al. t1+t t1e <or& shall s1o")& ,e inter%rete& to (e+n &ay in
!ie< o2 t1e %1r+se F"%on t1e re4o((en&+tion o2 t1e Se4ret+r5 o2 ;in+n4e.G
Neit1er &oes t1e #o"rt 2in& %ers"+si!e t1e s",(ission o2 %etitioners
Es4"&ero, et al. t1+t +n5 re4o((en&+tion ,5 t1e Se4ret+r5 o2 ;in+n4e 4+n
e+si)5 ,e ,r"s1e& +si&e ,5 t1e Presi&ent sin4e t1e 2or(er is + (ere +)ter e*o
o2 t1e )+tter.

C1en 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, Ts1o")& ,e o2 t1e Presi&entSs ,oso( 4on2i&en4eT +n&, in t1e
)+n*"+*e o2 Attorne5-Gener+) #"s1in*, is Fs",3e4t to t1e &ire4tion o2 t1e
Presi&ent.T
A00B


In t1e %resent 4+se, in (+=in* 1is re4o((en&+tion to t1e Presi&ent on
t1e e'isten4e o2 eit1er o2 t1e t<o 4on&itions, t1e Se4ret+r5 o2 ;in+n4e is not
+4tin* +s t1e +)ter e*o o2 t1e Presi&ent or e!en 1er s",or&in+te. In s"41
inst+n4e, 1e is not s",3e4t to t1e %o<er o2 4ontro) +n& &ire4tion o2 t1e
Presi&ent. $e is +4tin* +s t1e +*ent o2 t1e )e*is)+ti!e &e%+rt(ent, to
&eter(ine +n& &e4)+re t1e e!ent "%on <1i41 its e'%resse& <i)) is to t+=e
e22e4t.
A0EB
T1e Se4ret+r5 o2 ;in+n4e ,e4o(es t1e (e+ns or too) ,5 <1i41
)e*is)+ti!e %o)i45 is &eter(ine& +n& i(%)e(ente&, 4onsi&erin* t1+t 1e
%ossesses +)) t1e 2+4i)ities to *+t1er &+t+ +n& in2or(+tion +n& 1+s + ("41
,ro+&er %ers%e4ti!e to %ro%er)5 e!+)"+te t1e(. $is 2"n4tion is to *+t1er +n&
4o))+te st+tisti4+) &+t+ +n& ot1er %ertinent in2or(+tion +n& !eri25 i2 +n5 o2 t1e
t<o 4on&itions )+i& o"t ,5 #on*ress is %resent. $is %erson+)it5 in s"41
inst+n4e is in re+)it5 ,"t + %ro3e4tion o2 t1+t o2 #on*ress. T1"s, ,ein* t1e
+*ent o2 #on*ress +n& not o2 t1e Presi&ent, t1e Presi&ent 4+nnot +)ter or
(o&i25 or n"))i25, or set +si&e t1e 2in&in*s o2 t1e Se4ret+r5 o2 ;in+n4e +n& to
s",stit"te t1e 3"&*(ent o2 t1e 2or(er 2or t1+t o2 t1e )+tter.

#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, <1et1er ,5 De4e(,er @-, .//0, t1e
!+)"e-+&&e& t+' 4o))e4tion +s + %er4ent+*e o2 Gross Do(esti4 Pro&"4t
7GDP: o2 t1e %re!io"s 5e+r e'4ee&s t<o +n& 2o"r-2i2t1 %er4ent 7.
D
L
0
I: or t1e
n+tion+) *o!ern(ent &e2i4it +s + %er4ent+*e o2 GDP o2 t1e %re!io"s 5e+r
e'4ee&s one +n& one-1+)2 %er4ent 7-NI:. I2 eit1er o2 t1ese t<o inst+n4es
1+s o44"rre&, t1e Se4ret+r5 o2 ;in+n4e, ,5 )e*is)+ti!e (+n&+te, ("st s",(it
s"41 in2or(+tion to t1e Presi&ent. T1en t1e -.I VAT r+te ("st ,e i(%ose&
,5 t1e Presi&ent e22e4ti!e J+n"+r5 -, .//E. T9ere 52 o 8!8e !ele7a35o
o: le752la35Ce 1oIer 483 oly o: 39e !52Bre35o a2 3o 39e eEeB835o o: a
laI. T952 52 Bo2353835oally 1erm52254le.
A08B
#on*ress &oes not +,&i4+te its
2"n4tions or "n&")5 &e)e*+te %o<er <1en it &es4ri,es <1+t 3o, ("st ,e
&one, <1o ("st &o it, +n& <1+t is t1e s4o%e o2 1is +"t1orit5M in o"r 4o(%)e'
e4ono(5 t1+t is 2re6"ent)5 t1e on)5 <+5 in <1i41 t1e )e*is)+ti!e %ro4ess 4+n
*o 2or<+r&.
A09B

As to t1e +r*"(ent o2 %etitioners ABAKADA GURO P+rt5 List, et al.
t1+t &e)e*+tin* to t1e Presi&ent t1e )e*is)+ti!e %o<er to t+' is 4ontr+r5 to t1e
%rin4i%)e o2 re%",)i4+nis(, t1e s+(e &eser!es s4+nt 4onsi&er+tion. #on*ress
&i& not &e)e*+te t1e %o<er to t+' ,"t t1e (ere i(%)e(ent+tion o2 t1e )+<.
T1e intent +n& <i)) to in4re+se t1e VAT r+te to -.I 4+(e 2ro( #on*ress +n&
t1e t+s= o2 t1e Presi&ent is to si(%)5 e'e4"te t1e )e*is)+ti!e %o)i45. T1+t
#on*ress 41ose to &o so in s"41 + (+nner is not <it1in t1e %ro!in4e o2 t1e
#o"rt to in6"ire into, its t+s= ,ein* to inter%ret t1e )+<.
A0?B

T1e insin"+tion ,5 %etitioners Pi(ente), et al. t1+t t1e Presi&ent 1+s
+(%)e %o<ers to 4+"se, in2)"en4e or 4re+te t1e 4on&itions to ,rin* +,o"t
eit1er or ,ot1 t1e 4on&itions %re4e&ent &oes not &eser!e +n5 (erit +s t1is
+r*"(ent is 1i*1)5 s%e4")+ti!e. T1e #o"rt &oes not r")e on +))e*+tions
<1i41 +re (+ni2est)5 4on3e4t"r+), +s t1ese (+5 not e'ist +t +)). T1e #o"rt
&e+)s <it1 2+4ts, not 2+n4iesM on re+)ities, not +%%e+r+n4es. C1en t1e #o"rt
+4ts on +%%e+r+n4es inste+& o2 re+)ities, 3"sti4e +n& )+< <i)) ,e s1ort-)i!e&.

B. #he !"= 3ncrease +A# Rate Does /ot
3&pose an Un$air and Unnecessary
Additional #a* Burden


Petitioners Pi(ente), et al. +r*"e t1+t t1e -.I 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 -.I 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 <o")& ,e ret"rne& to t1e ori*in+) -/I i2 t1e r+tes +re no )on*er
s+tis2ie&. Petitioners +)so +r*"e t1+t s"41 r+te is "n2+ir +n& "nre+son+,)e, +s
t1e %eo%)e +re "ns"re o2 t1e +%%)i4+,)e VAT r+te 2ro( 5e+r to 5e+r.

Un&er t1e 4o((on provisos o2 Se4tions D, 0 +n& E o2 R.A. No. ?@@8,
i2 +n5 o2 t1e t<o 4on&itions set 2ort1 t1erein +re s+tis2ie&, t1e Presi&ent s1+))
in4re+se t1e VAT r+te to -.I. T1e %ro!isions o2 t1e )+< +re 4)e+r. It &oes
not %ro!i&e 2or + ret"rn to t1e -/I r+te nor &oes it e(%o<er t1e Presi&ent to
so re!ert i2, +2ter t1e r+te is in4re+se& to -.I, t1e VAT 4o))e4tion *oes ,e)o<
t1e .
D
L
0
o2 t1e GDP o2 t1e %re!io"s 5e+r or t1+t t1e n+tion+) *o!ern(ent
&e2i4it +s + %er4ent+*e o2 GDP o2 t1e %re!io"s 5e+r &oes not e'4ee& -NI.

T1ere2ore, no st+t"tor5 4onstr"4tion or inter%ret+tion is nee&e&.
Neit1er 4+n 4on&itions or )i(it+tions ,e intro&"4e& <1ere none is %ro!i&e&
2or. Re<ritin* t1e )+< is + 2or,i&&en *ro"n& t1+t on)5 #on*ress (+5 tre+&
"%on.
AE/B


T1"s, in t1e +,sen4e o2 +n5 %ro!ision %ro!i&in* 2or + ret"rn to t1e
-/I r+te, <1i41 in t1is 4+se t1e #o"rt 2in&s none, %etitionersH +r*"(ent is, +t
,est, %"re)5 s%e4")+ti!e. T1ere is no ,+sis 2or %etitionersH 2e+r o2 +
2)"4t"+tin* VAT r+te ,e4+"se t1e )+< itse)2 &oes not %ro!i&e t1+t t1e r+te
s1o")& *o ,+4= to -/I i2 t1e 4on&itions %ro!i&e& in Se4tions D, 0 +n& E +re
no )on*er %resent. T1e r")e is t1+t <1ere t1e %ro!ision o2 t1e )+< is 4)e+r
+n& "n+(,i*"o"s, so t1+t t1ere is no o44+sion 2or t1e 4o"rtSs 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.
AE-B

Petitioners +)so 4onten& t1+t t1e in4re+se in t1e VAT r+te, <1i41 <+s
+))e*e&)5 +n in4enti!e to t1e Presi&ent to r+ise t1e VAT 4o))e4tion to +t )e+st
.
D
L
0
o2 t1e GDP o2 t1e %re!io"s 5e+r, s1o")& ,e ,+se& on 2is4+) +&e6"+45.

Petitioners o,!io"s)5 o!er)oo=e& t1+t in4re+se in VAT 4o))e4tion is not
t1e only 4on&ition. T1ere is +not1er 4on&ition, i.e., t1e n+tion+) *o!ern(ent
&e2i4it +s + %er4ent+*e o2 GDP o2 t1e %re!io"s 5e+r e'4ee&s one +n& one-1+)2
%er4ent 7- NI:.

Res%on&ents e'%)+ine& t1e %1i)oso%15 ,e1in& t1ese +)tern+ti!e
4on&itions:

-. VATLGDP R+tio U ..9I

T1e 4on&ition set 2or in4re+sin* VAT r+te to -.I 1+!e e4ono(i4 or
2is4+) (e+nin*. I2 VATLGDP is )ess t1+n ..9I, it (e+ns t1+t *o!ern(ent
1+s <e+= or no 4+%+,i)it5 o2 i(%)e(entin* t1e VAT or t1+t VAT is not
e22e4ti!e in t1e 2"n4tion o2 t1e t+' 4o))e4tion. T1ere2ore, t1ere is no !+)"e
to in4re+se it to -.I ,e4+"se s"41 +4tion <i)) +)so ,e ine22e4t"+).

.. N+tH) Go!Ht De2i4itLGDP U-.0I

T1e 4on&ition set 2or in4re+sin* VAT <1en &e2i4itLGDP is -.0I or
)ess (e+ns t1e 2is4+) 4on&ition o2 *o!ern(ent 1+s re+41e& + re)+ti!e)5
so"n& %osition or is to<+r&s t1e &ire4tion o2 + ,+)+n4e& ,"&*et %osition.
T1ere2ore, t1ere is no nee& to in4re+se t1e VAT r+te sin4e t1e 2is4+) 1o"se
is in + re)+ti!e)5 1e+)t15 %osition. Ot1er<ise st+te&, i2 t1e r+tio is (ore
t1+n -.0I, t1ere is in&ee& + nee& to in4re+se t1e VAT r+te.
AE.B


T1+t t1e 2irst 4on&ition +(o"nts to +n in4enti!e to t1e Presi&ent to
in4re+se t1e VAT 4o))e4tion &oes not ren&er it "n4onstit"tion+) so )on* +s
t1ere is + %",)i4 %"r%ose 2or <1i41 t1e )+< <+s %+sse&, <1i41 in t1is 4+se, is
(+in)5 to r+ise re!en"e. In 2+4t, $iscal ade>uacy &i4t+te& t1e nee& 2or + r+ise
in re!en"e.

T1e %rin4i%)e o2 2is4+) +&e6"+45 +s + 41+r+4teristi4 o2 + so"n& t+'
s5ste( <+s ori*in+))5 st+te& ,5 A&+( S(it1 in 1is 'anons o$ #a*ation
7-88E:, +s:

IV. E!er5 t+' o"*1t to ,e so 4ontri!e& +s ,ot1 to t+=e o"t +n& to =ee%
o"t o2 t1e %o4=ets o2 t1e %eo%)e +s )itt)e +s %ossi,)e o!er +n& +,o!e
<1+t it ,rin*s into t1e %",)i4 tre+s"r5 o2 t1e st+te.
AE@B


It si(%)5 (e+ns t1+t so"r4es o2 re!en"es ("st ,e +&e6"+te to (eet
*o!ern(ent e'%en&it"res +n& t1eir !+ri+tions.
AEDB


T1e &ire nee& 2or re!en"e 4+nnot ,e i*nore&. O"r 4o"ntr5 is in +
6"+*(ire o2 2in+n4i+) <oe. D"rin* t1e Bi4+(er+) #on2eren4e #o((ittee
1e+rin*, t1en ;in+n4e Se4ret+r5 P"risi(+ ,)"nt)5 &e%i4te& t1e 4o"ntr5Hs
*)oo(5 st+te o2 e4ono(i4 +22+irs, t1"s:

;irst, )et (e e'%)+in t1e %osition t1+t t1e P1i)i%%ines 2in&s itse)2 in
ri*1t no<. Ce +re in + %osition <1ere ?/ %er4ent o2 o"r re!en"e is "se&
2or &e,t ser!i4e. So, 2or e!er5 %eso o2 re!en"e t1+t <e 4"rrent)5 r+ise, ?/
*oes to &e,t ser!i4e. T1+tHs interest %)"s +(ortiK+tion o2 o"r &e,t. So
4)e+r)5, t1is is not + s"st+in+,)e sit"+tion. T1+tHs t1e 2irst 2+4t.

T1e se4on& 2+4t is t1+t o"r &e,t to GDP )e!e) is <+5 o"t o2 )ine
4o(%+re& to ot1er %eer 4o"ntries t1+t ,orro< (one5 2ro( t1+t
intern+tion+) 2in+n4i+) (+r=ets. O"r &e,t to GDP is +%%ro'i(+te)5 e6"+)
to o"r GDP. A*+in, t1+t s1o<s 5o" t1+t t1is is not + s"st+in+,)e sit"+tion.

T1e t1ir& t1in* t1+t IH& )i=e to %oint o"t is t1e en!iron(ent t1+t <e
+re %resent)5 o%er+tin* in is not +s ,eni*n +s <1+t it "se& to ,e t1e %+st
2i!e 5e+rs.

C1+t &o I (e+n ,5 t1+tJ

In t1e %+st 2i!e 5e+rs, <eH!e ,een )"4=5 ,e4+"se <e <ere o%er+tin*
in + %erio& o2 ,+si4+))5 *)o,+) *ro<t1 +n& )o< interest r+tes. T1e %+st 2e<
(ont1s, <e 1+!e seen +n in41in* "%, in 2+4t, + r+%i& in4re+se in t1e interest
r+tes in t1e )e+&in* e4ono(ies o2 t1e <or)&. An&, t1ere2ore, o"r +,i)it5 to
,orro< +t re+son+,)e %ri4es is *oin* to ,e 41+))en*e&. In 2+4t, ")ti(+te)5,
t1e 6"estion is o"r +,i)it5 to +44ess t1e 2in+n4i+) (+r=ets.

C1en t1e Presi&ent (+&e 1er s%ee41 in J")5 )+st 5e+r, t1e
en!iron(ent <+s not +s ,+& +s it is no<, +t )e+st ,+se& on t1e 2ore4+st o2
(ost 2in+n4i+) instit"tions. So, <e <ere +ss"(in* t1+t r+isin* 9/ ,i))ion
<o")& %"t "s in + %osition <1ere <e 4+n t1en 4on!in4e t1e( to i(%ro!e
o"r +,i)it5 to ,orro< +t )o<er r+tes. B"t 4on&itions 1+!e 41+n*e& on "s
,e4+"se t1e interest r+tes 1+!e *one "%. In 2+4t, 3"st <it1in t1is roo(, <e
trie& to +44ess t1e (+r=et 2or + ,i))ion &o))+rs ,e4+"se 2or t1is 5e+r +)one,
t1e P1i)i%%ines <i)) 1+!e to ,orro< D ,i))ion &o))+rs. O2 t1+t +(o"nt, <e
1+!e ,orro<e& -.0 ,i))ion. Ce iss"e& )+st J+n"+r5 + .0-5e+r ,on& +t ?.8
%er4ent 4ost. Ce <ere tr5in* to +44ess )+st <ee= +n& t1e (+r=et <+s not
+s 2+!or+,)e +n& "% to no< <e 1+!e not +44esse& +n& <e (i*1t %")) ,+4=
,e4+"se t1e 4on&itions +re not !er5 *oo&.

So *i!en t1is sit"+tion, <e +t t1e De%+rt(ent o2 ;in+n4e ,e)ie!e
t1+t <e re+))5 nee& to 2ront-en& o"r &e2i4it re&"4tion. Be4+"se it is &e2i4it
t1+t is 4+"sin* t1e in4re+se o2 t1e &e,t +n& <e +re in <1+t <e 4+)) + &e,t
s%ir+). T1e (ore &e,t 5o" 1+!e, t1e (ore &e2i4it 5o" 1+!e ,e4+"se interest
+n& &e,t ser!i4e e+ts +n& e+ts (ore o2 5o"r re!en"e. Ce nee& to *et o"t o2
t1is &e,t s%ir+). An& t1e on)5 <+5, I t1in=, <e 4+n *et o"t o2 t1is &e,t
s%ir+) is re+))5 1+!e + 2ront-en& +&3"st(ent in o"r re!en"e ,+se.
AE0B


T1e i(+*e %ortr+5e& is 41i))in*. #on*ress %+sse& t1e )+< 1o%in* 2or
res4"e 2ro( +n ine!it+,)e 4+t+stro%1e. C1et1er t1e )+< is in&ee& s"22i4ient
to +ns<er t1e st+teHs e4ono(i4 &i)e((+ is not 2or t1e #o"rt to 3"&*e. In t1e
%ari(as 4+se, t1e #o"rt re2"se& to 4onsi&er t1e !+rio"s +r*"(ents r+ise&
t1erein t1+t &<e)t on t1e <is&o( o2 Se4tion -D o2 R.A. No. ?//E 7T1e ;+ir
E)e4tion A4t:, %rono"n4in* t1+t:

. . . %o)i45 (+tters +re not t1e 4on4ern o2 t1e #o"rt. Go!ern(ent
%o)i45 is <it1in t1e e'4)"si!e &o(inion o2 t1e %o)iti4+) ,r+n41es o2 t1e
*o!ern(ent. It is not 2or t1is #o"rt to )oo= into t1e <is&o( or %ro%riet5
o2 )e*is)+ti!e &eter(in+tion. In&ee&, <1et1er +n en+4t(ent is <ise or
"n<ise, <1et1er it is ,+se& on so"n& e4ono(i4 t1eor5, <1et1er it is t1e
,est (e+ns to +41ie!e t1e &esire& res")ts, <1et1er, in s1ort, t1e )e*is)+ti!e
&is4retion <it1in its %res4ri,e& )i(its s1o")& ,e e'er4ise& in + %+rti4")+r
(+nner +re (+tters 2or t1e 3"&*(ent o2 t1e )e*is)+t"re, +n& t1e serio"s
4on2)i4t o2 o%inions &oes not s"22i4e to ,rin* t1e( <it1in t1e r+n*e o2
3"&i4i+) 4o*niK+n4e.
AEEB


In t1e s+(e !ein, t1e #o"rt in t1is 4+se <i)) not &+<&)e on t1e %"r%ose
o2 #on*ress or t1e e'e4"ti!e %o)i45, *i!en t1+t it is not 2or t1e 3"&i4i+r5 to
T%+ss "%on 6"estions o2 <is&o(, 3"sti4e or e'%e&ien45 o2 )e*is)+tion.G
AE8B

II.
C1et1er Se4tion 9 o2 R.A. No. ?@@8, +(en&in* Se4tions --/7A:7.: +n&
--/7B: o2 t1e NIR#M +n& Se4tion -. o2 R.A. No. ?@@8, +(en&in* Se4tion
--D7#: o2 t1e NIR#, !io)+te t1e 2o))o<in* %ro!isions o2 t1e #onstit"tion:

+. Arti4)e VI, Se4tion .97-:, +n&
,. Arti4)e III, Se4tion -


A. Due Process and )>ual Protection 'lauses


Petitioners Asso4i+tion o2 Pilipinas S1e)) De+)ers, In4., et al. +r*"e
t1+t Se4tion 9 o2 R.A. No. ?@@8, +(en&in* Se4tions --/ 7A:7.:, --/ 7B:, +n&
Se4tion -. o2 R.A. No. ?@@8, +(en&in* Se4tion --D 7#: o2 t1e NIR# +re
+r,itr+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, )i,ert5 o2
%ro%ert5 <it1o"t &"e %ro4ess o2 )+<, +s e(,o&ie& in Arti4)e III, Se4tion - o2
t1e #onstit"tion.

Petitioners +)so 4onten& t1+t t1ese %ro!isions !io)+te t1e 4onstit"tion+)
*"+r+ntee o2 e6"+) %rote4tion o2 t1e )+<.
T1e &o4trine is t1+t <1ere t1e &"e %ro4ess +n& e6"+) %rote4tion
4)+"ses +re in!o=e&, 4onsi&erin* t1+t t1e5 +re not 2i'e& r")es ,"t r+t1er ,ro+&
st+n&+r&s, t1ere is + nee& 2or %roo2 o2 s"41 %ers"+si!e 41+r+4ter +s <o")&
)e+& to s"41 + 4on4)"sion. A,sent s"41 + s1o<in*, t1e %res"(%tion o2
!+)i&it5 ("st %re!+i).
AE9B


Se4tion 9 o2 R.A. No. ?@@8, +(en&in* Se4tion --/7B: o2 t1e NIR#
i(%oses + )i(it+tion on t1e +(o"nt o2 in%"t t+' t1+t (+5 ,e 4re&ite& +*+inst
t1e o"t%"t t+'. It st+tes, in %+rt: FAPBrovided, t1+t t1e in%"t t+' in4)"si!e o2
t1e in%"t VAT 4+rrie& o!er 2ro( t1e %re!io"s 6"+rter t1+t (+5 ,e 4re&ite& in
e!er5 6"+rter s1+)) not e'4ee& se!ent5 %er4ent 78/I: o2 t1e o"t%"t VAT: >G

3nput #a* is &e2ine& "n&er Se4tion --/7A: o2 t1e NIR#, +s +(en&e&,
+s t1e !+)"e-+&&e& t+' &"e $ro& or paid ,5 + VAT-re*istere& %erson on t1e
i(%ort+tion o2 *oo&s or )o4+) %"r41+se o2 *oo& +n& ser!i4es, in4)"&in* )e+se
or "se o2 %ro%ert5, in t1e 4o"rse o2 tr+&e or ,"siness, 2ro( + VAT-re*istere&
%erson, +n& Output #a* is 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 )+<.


Petitioners 4)+i( t1+t t1e 4onteste& se4tions i(%ose )i(it+tions on t1e
+(o"nt o2 in%"t t+' t1+t (+5 ,e 4)+i(e&. In e22e4t, + %ortion o2 t1e in%"t t+'
t1+t 1+s +)re+&5 ,een %+i& 4+nnot no< ,e 4re&ite& +*+inst t1e o"t%"t t+'.

PetitionersH +r*"(ent is not +,so)"te. It +ss"(es t1+t t1e in%"t t+'
e'4ee&s 8/I o2 t1e o"t%"t t+', +n& t1ere2ore, t1e in%"t t+' in e'4ess o2 8/I
re(+ins "n4re&ite&. $o<e!er, to t1e e'tent t1+t t1e in%"t t+' is )ess t1+n
8/I o2 t1e o"t%"t t+', t1en -//I o2 s"41 in%"t t+' is sti)) 4re&it+,)e.

More i(%ort+nt)5, t1e e'4ess in%"t t+', i2 +n5, is ret+ine& in +
,"sinessHs ,oo=s o2 +44o"nts +n& re(+ins 4re&it+,)e in t1e s"44ee&in*
6"+rterLs. T1is is e'%)i4it)5 +))o<e& ,5 Se4tion --/7B:, <1i41 %ro!i&es t1+t
Fi2 t1e in%"t t+' e'4ee&s t1e o"t%"t t+', t1e e'4ess s1+)) ,e 4+rrie& o!er to
t1e s"44ee&in* 6"+rter or 6"+rters.G In +&&ition, Se4tion --.7B: +))o<s +
VAT-re*istere& %erson to +%%)5 2or t1e iss"+n4e o2 + t+' 4re&it 4erti2i4+te or
re2"n& 2or +n5 "n"se& in%"t t+'es, to t1e e'tent t1+t s"41 in%"t t+'es 1+!e
not ,een +%%)ie& +*+inst t1e o"t%"t t+'es. S"41 "n"se& in%"t t+' (+5 ,e
"se& in %+5(ent o2 1is ot1er intern+) re!en"e t+'es.

T1e non-+%%)i4+tion o2 t1e "n"ti)iKe& in%"t t+' in + *i!en 6"+rter is
not ad in$initu&, +s %etitioners e'+**er+te&)5 4onten&. T1eir +n+)5sis o2 t1e
e22e4t o2 t1e 8/I )i(it+tion is in4o(%)ete +n& one-si&e&. It en&s +t t1e net
e22e4t t1+t t1ere <i)) ,e "n+%%)ie&L"n"ti)iKe& in%"ts VAT 2or + *i!en 6"+rter.
It &oes not %ro4ee& 2"rt1er to t1e 2+4t t1+t s"41 "n+%%)ie&L"n"ti)iKe& in%"t
t+' (+5 ,e 4re&ite& in t1e s",se6"ent %erio&s +s +))o<e& ,5 t1e 4+rr5-o!er
%ro!ision o2 Se4tion --/7B: or t1+t it (+5 )+ter on ,e re2"n&e& t1ro"*1 + t+'
4re&it 4erti2i4+te "n&er Se4tion --.7B:.

T1ere2ore, %etitionersH +r*"(ent ("st ,e re3e4te&.

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 )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<s VAT-
re*istere& est+,)is1(ents to ret+in + %ortion o2 t1e t+'es t1e5 4o))e4t, <1i41
!io)+tes t1e %rin4i%)e t1+t t+' 4o))e4tion +n& re!en"e s1o")& ,e 2or %",)i4
%"r%oses +n& e'%en&it"res

As e+r)ier st+te&, t1e in%"t t+' is t1e t+' %+i& ,5 + %erson, %+sse& on to
1i( ,5 t1e se))er, <1en 1e ,"5s *oo&s. O"t%"t t+' (e+n<1i)e is t1e t+' &"e
to t1e %erson <1en 1e se))s *oo&s. In 4o(%"tin* t1e VAT %+5+,)e, t1ree
%ossi,)e s4en+rios (+5 +rise:

;irst, i2 +t t1e en& o2 + t+'+,)e 6"+rter t1e o"t%"t t+'es 41+r*e& ,5 t1e
se))er +re e6"+) to t1e in%"t t+'es t1+t 1e %+i& +n& %+sse& on ,5 t1e s"%%)iers,
t1en no %+5(ent is re6"ire&M

Se4on&, <1en t1e o"t%"t t+'es e'4ee& t1e in%"t t+'es, t1e %erson s1+))
,e )i+,)e 2or t1e e'4ess, <1i41 1+s to ,e %+i& to t1e B"re+" o2 Intern+)
Re!en"e 7BIR:M
AE?B
+n&

T1ir&, i2 t1e in%"t t+'es e'4ee& t1e o"t%"t t+'es, t1e e'4ess s1+)) ,e
4+rrie& o!er to t1e s"44ee&in* 6"+rter or 6"+rters. S1o")& t1e in%"t t+'es
res")t 2ro( Kero-r+te& or e22e4ti!e)5 Kero-r+te& tr+ns+4tions, +n5 e'4ess o!er
t1e o"t%"t t+'es s1+)) inste+& ,e re2"n&e& to t1e t+'%+5er or 4re&ite& +*+inst
ot1er intern+) re!en"e t+'es, +t t1e t+'%+5erHs o%tion.
A8/B

Se4tion 9 o2 R.A. No. ?@@8 1o<e!er, i(%ose& + 8/I )i(it+tion on t1e
in%"t t+'. T1"s, + %erson 4+n 4re&it 1is in%"t t+' on)5 "% to t1e e'tent o2
8/I o2 t1e o"t%"t t+'. In )+5(+nHs ter(, t1e !+)"e-+&&e& t+'es t1+t +
%ersonLt+'%+5er %+i& +n& %+sse& on to 1i( ,5 + se))er 4+n on)5 ,e 4re&ite&
"% to 8/I o2 t1e !+)"e-+&&e& t+'es t1+t is &"e to 1i( on + t+'+,)e
tr+ns+4tion. T1ere is no retention o2 +n5 t+' 4o))e4tion ,e4+"se t1e
%ersonLt+'%+5er 1+s +)re+&5 %re!io"s)5 %+i& t1e in%"t t+' to + se))er, +n& t1e
se))er <i)) s",se6"ent)5 re(it s"41 in%"t t+' to t1e BIR. T1e %+rt5 &ire4t)5
)i+,)e 2or t1e %+5(ent o2 t1e t+' is t1e se))er.
A8-B
C1+t on)5 nee&s to ,e &one
is 2or t1e %ersonLt+'%+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 o2 Pilipinas S1e)) 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& <it1o"t &"e %ro4ess o2 )+<.

T1e in%"t t+' is not + %ro%ert5 or + %ro%ert5 ri*1t <it1in t1e
4onstit"tion+) %"r!ie< o2 t1e &"e %ro4ess 4)+"se. A VAT-re*istere& %ersonHs
entit)e(ent to t1e 4re&it+,)e in%"t t+' is + (ere st+t"tor5 %ri!i)e*e.

T1e &istin4tion ,et<een st+t"tor5 %ri!i)e*es +n& !este& ri*1ts ("st ,e
,orne in (in& 2or %ersons 1+!e no !este& ri*1ts in st+t"tor5 %ri!i)e*es. T1e
st+te (+5 41+n*e or t+=e +<+5 ri*1ts, <1i41 <ere 4re+te& ,5 t1e )+< o2 t1e
st+te, +)t1o"*1 it (+5 not t+=e +<+5 %ro%ert5, <1i41 <+s !este& ,5 !irt"e o2
s"41 ri*1ts.
A8.B


Un&er t1e %re!io"s s5ste( o2 sin*)e-st+*e t+'+tion, t+'es %+i& +t e!er5
)e!e) o2 &istri,"tion +re not re4o!er+,)e 2ro( t1e t+'es %+5+,)e, +)t1o"*1 it
,e4o(es %+rt o2 t1e 4ost, <1i41 is &e&"4ti,)e 2ro( t1e *ross re!en"e. C1en
Pres. A6"ino iss"e& E.O. No. .8@ i(%osin* + -/I (")ti-st+*e t+' on +))
s+)es, it <+s t1en t1+t t1e 4re&itin* o2 t1e in%"t t+' %+i& on %"r41+se or
i(%ort+tion o2 *oo&s +n& ser!i4es ,5 VAT-re*istere& %ersons +*+inst t1e
o"t%"t t+' <+s intro&"4e&.
A8@B
T1is <+s +&o%te& ,5 t1e E'%+n&e& VAT
L+< 7R.A. No. 88-E:,
A8DB
+n& T1e T+' Re2or( A4t o2 -??8 7R.A. No. 9D.D:.
A80B
T1e 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 )+<, + %ri!i)e*e t1+t +)so t1e )+< 4+n re(o!e, or in t1is 4+se,
)i(it.

Petitioners +)so 4ontest +s +r,itr+r5, o%%ressi!e, e'4essi!e +n&
4on2is4+tor5, Se4tion 9 o2 R.A. No. ?@@8, +(en&in* Se4tion --/7A: o2 t1e
NIR#, <1i41 %ro!i&es:

SE#. --/. #a* 'redits. P

7A: 'reditable 3nput #a*. P >

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 <1i41 &e&"4tion 2or
&e%re4i+tion is +))o<e& "n&er t1is #o&e, s1+)) ,e s%re+& e!en)5 o!er t1e
(ont1 o2 +46"isition +n& t1e 2i2t5-nine 70?: s"44ee&in* (ont1s i2 t1e
+**re*+te +46"isition 4ost 2or s"41 *oo&s, e'4)"&in* t1e VAT 4o(%onent
t1ereo2, e'4ee&s One (i))ion %esos 7P-,///,///.//:: Provided, 1o<e!er,
T1+t i2 t1e esti(+te& "se2") )i2e o2 t1e 4+%it+) *oo&s is )ess t1+n 2i!e 70:
5e+rs, +s "se& 2or &e%re4i+tion %"r%oses, t1en t1e in%"t VAT s1+)) ,e
s%re+& o!er s"41 + s1orter %erio&: Provided, $inally, T1+t in t1e 4+se o2
%"r41+se o2 ser!i4es, )e+se or "se o2 %ro%erties, t1e in%"t t+' s1+)) ,e
4re&it+,)e to t1e %"r41+ser, )essee or )i4ense "%on %+5(ent o2 t1e
4o(%ens+tion, rent+), ro5+)t5 or 2ee.


T1e 2ore*oin* se4tion i(%oses + E/-(ont1 %erio& <it1in <1i41 to
+(ortiKe t1e 4re&it+,)e in%"t t+' on %"r41+se or i(%ort+tion o2 4+%it+) *oo&s
<it1 +46"isition 4ost o2 P- Mi))ion %esos, e'4)"si!e o2 t1e VAT 4o(%onent.
S"41 s%re+& o"t on)5 %oses + &e)+5 in t1e 4re&itin* o2 t1e in%"t t+'.
PetitionersH +r*"(ent is <it1o"t ,+sis ,e4+"se t1e t+'%+5er is not
%er(+nent)5 &e%ri!e& o2 1is %ri!i)e*e to 4re&it t1e in%"t t+'.

It is <ort1 (entionin* t1+t #on*ress +&(itte& t1+t t1e s%re+&-o"t o2
t1e 4re&it+,)e in%"t t+' in t1is 4+se +(o"nts to + D-5e+r interest-2ree )o+n to
t1e *o!ern(ent.
A8EB
In t1e s+(e ,re+t1, #on*ress +)so 3"sti2ie& its (o!e ,5
s+5in* t1+t t1e %ro!ision <+s &esi*ne& to r+ise +n +nn"+) re!en"e o2 ...E
,i))ion.
A88B
T1e )e*is)+t"re +)so &is%e))e& t1e 2e+r t1+t t1e %ro!ision <i)) 2en&
o22 2orei*n in!est(ents, s+5in* t1+t 2orei*n in!estors 1+!e ot1er t+'
in4enti!es %ro!i&e& ,5 )+<, +n& 4itin* t1e 4+se o2 #1in+, <1ere &es%ite +
-8.0I non-4re&it+,)e VAT, 2orei*n in!est(ents <ere not &eterre&.
A89B
A*+in,
2or <1+te!er is t1e %"r%ose o2 t1e E/-(ont1 +(ortiK+tion, t1is in!o)!es
e'e4"ti!e e4ono(i4 %o)i45 +n& )e*is)+ti!e <is&o( in <1i41 t1e #o"rt 4+nnot
inter!ene.

Cit1 re*+r& to t1e 0I 4re&it+,)e <it11o)&in* t+' i(%ose& on
%+5(ents (+&e ,5 t1e *o!ern(ent 2or t+'+,)e tr+ns+4tions, Se4tion -. o2
R.A. No. ?@@8, <1i41 +(en&e& Se4tion --D o2 t1e NIR#, re+&s:

SE#. --D. Ret"rn +n& P+5(ent o2 V+)"e-+&&e& T+'. P

7#: Cit11o)&in* o2 V+)"e-+&&e& T+'. P T1e Go!ern(ent or +n5 o2
its %o)iti4+) s",&i!isions, instr"(ent+)ities or +*en4ies, in4)"&in*
*o!ern(ent-o<ne& or 4ontro))e& 4or%or+tions 7GO##s: s1+)), ,e2ore
(+=in* %+5(ent on +44o"nt o2 e+41 %"r41+se o2 *oo&s +n& ser!i4es <1i41
+re s",3e4t to t1e !+)"e-+&&e& t+' i(%ose& in Se4tions -/E +n& -/9 o2 t1is
#o&e, &e&"4t +n& <it11o)& + 2in+) !+)"e-+&&e& t+' +t t1e r+te o2 2i!e
%er4ent 70I: o2 t1e *ross %+5(ent t1ereo2: Pro!i&e&, T1+t t1e %+5(ent
2or )e+se or "se o2 %ro%erties or %ro%ert5 ri*1ts to nonresi&ent o<ners s1+))
,e s",3e4t to ten %er4ent 7-/I: <it11o)&in* t+' +t t1e ti(e o2 %+5(ent.
;or %"r%oses o2 t1is Se4tion, t1e %+5or or %erson in 4ontro) o2 t1e %+5(ent
s1+)) ,e 4onsi&ere& +s t1e <it11o)&in* +*ent.

T1e !+)"e-+&&e& t+' <it11e)& "n&er t1is Se4tion s1+)) ,e
re(itte& <it1in ten 7-/: &+5s 2o))o<in* t1e en& o2 t1e (ont1 t1e
<it11o)&in* <+s (+&e.


Se4tion --D7#: (ere)5 %ro!i&es + (et1o& o2 4o))e4tion, or +s st+te& ,5
res%on&ents, + (ore si(%)i2ie& VAT <it11o)&in* s5ste(. T1e *o!ern(ent in
t1is 4+se is 4onstit"te& +s + <it11o)&in* +*ent <it1 res%e4t to t1eir %+5(ents
2or *oo&s +n& ser!i4es.

Prior to its +(en&(ent, Se4tion --D7#: %ro!i&e& 2or &i22erent r+tes o2
!+)"e-+&&e& t+'es to ,e <it11e)& -- @I on *ross %+5(ents 2or %"r41+ses o2
*oo&sM EI on *ross %+5(ents 2or ser!i4es s"%%)ie& ,5 4ontr+4tors ot1er t1+n
,5 %",)i4 <or=s 4ontr+4torsM 9.0I on *ross %+5(ents 2or ser!i4es s"%%)ie&
,5 %",)i4 <or= 4ontr+4torsM or -/I on %+5(ent 2or t1e )e+se or "se o2
%ro%erties or %ro%ert5 ri*1ts to nonresi&ent o<ners. Un&er t1e %resent
Se4tion --D7#:, t1ese &i22erent r+tes, e'4e%t 2or t1e -/I on )e+se or %ro%ert5
ri*1ts %+5(ent to nonresi&ents, <ere &e)ete&, +n& + "ni2or( r+te o2 0I is
+%%)ie&.

T1e #o"rt o,ser!es, 1o<e!er, t1+t t1e )+< t1e "se& t1e <or& $inal. In
t+' "s+*e, $inal, +s o%%ose& to 4re&it+,)e, (e+ns 2")). T1"s, it is %ro!i&e& in
Se4tion --D7#:: F2in+) !+)"e-+&&e& t+' +t t1e r+te o2 2i!e %er4ent 70I:.G

In Re!en"e Re*")+tions No. /.-?9, i(%)e(entin* R.A. No. 9D.D 7T1e
T+' Re2or( A4t o2 -??8:, t1e 4on4e%t o2 2in+) <it11o)&in* t+' on in4o(e
<+s e'%)+ine&, to <it:

SE#TION ..08. Cit11o)&in* o2 T+' +t So"r4e

7A: ;in+) Cit11o)&in* T+'. P Un&er t1e 2in+) <it11o)&in* t+'
s5ste( t1e +(o"nt o2 in4o(e t+' <it11e)& ,5 t1e <it11o)&in* +*ent is
4onstit"te& +s :8ll a! :5al 1ayme3 o2 t1e in4o(e t+' &"e 2ro( t1e
%+5ee on t1e s+i& in4o(e. T1e )i+,i)it5 2or %+5(ent o2 t1e t+' rests
%ri(+ri)5 on t1e %+5or +s + <it11o)&in* +*ent. T1"s, in 4+se o2 1is 2+i)"re
to <it11o)& t1e t+' or in 4+se o2 "n&er<it11o)&in*, t1e &e2i4ien45 t+' s1+))
,e 4o))e4te& 2ro( t1e %+5orL<it11o)&in* +*ent. >

7B: #re&it+,)e Cit11o)&in* T+'. P Un&er t1e 4re&it+,)e
<it11o)&in* t+' s5ste(, t+'es <it11e)& on 4ert+in in4o(e %+5(ents +re
inten&e& to e6"+) or +t )e+st +%%ro'i(+te t1e t+' &"e o2 t1e %+5ee on s+i&
in4o(e. > T+'es <it11e)& on in4o(e %+5(ents 4o!ere& ,5 t1e e'%+n&e&
<it11o)&in* t+' 7re2erre& to in Se4. ..08.. o2 t1ese re*")+tions: +n&
4o(%ens+tion in4o(e 7re2erre& to in Se4. ..89 +)so o2 t1ese re*")+tions:
+re 4re&it+,)e in n+t"re.


As +%%)ie& to !+)"e-+&&e& t+', t1is (e+ns t1+t t+'+,)e tr+ns+4tions
<it1 t1e *o!ern(ent +re s",3e4t to + 0I r+te, <1i41 4onstit"tes +s 2"))
%+5(ent o2 t1e t+' %+5+,)e on t1e tr+ns+4tion. T1is re%resents t1e net VAT
%+5+,)e o2 t1e se))er. T1e ot1er 0I e22e4ti!e)5 +44o"nts 2or t1e st+n&+r&
in%"t VAT 7&ee(e& in%"t VAT:, in )ie" o2 t1e +4t"+) in%"t VAT &ire4t)5 or
+ttri,"t+,)e to t1e t+'+,)e tr+ns+4tion.
A8?B

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 <it1 t1e
*o!ern(ent.
A9/B
T1is is s"%%orte& ,5 t1e 2+4t t1+t "n&er t1e o)& %ro!ision,
t1e 0I t+' <it11e)& ,5 t1e *o!ern(ent re(+ins 4re&it+,)e +*+inst t1e t+'
)i+,i)it5 o2 t1e se))er or 4ontr+4tor, to <it:

SE#. --D. Ret"rn +n& P+5(ent o2 V+)"e-+&&e& T+'. P

7#: @5399ol!57 o: Cre!53a4le "al8e-a!!e! TaE. P T1e
Go!ern(ent or +n5 o2 its %o)iti4+) s",&i!isions, instr"(ent+)ities or
+*en4ies, in4)"&in* *o!ern(ent-o<ne& or 4ontro))e& 4or%or+tions
7GO##s: s1+)), ,e2ore (+=in* %+5(ent on +44o"nt o2 e+41 %"r41+se o2
*oo&s 2ro( se))ers +n& ser!i4es ren&ere& ,5 4ontr+4tors <1i41 +re s",3e4t
to t1e !+)"e-+&&e& t+' i(%ose& in Se4tions -/E +n& -/9 o2 t1is #o&e,
&e&"4t +n& <it11o)& t1e !+)"e-+&&e& t+' &"e +t t1e r+te o2 t1ree %er4ent
7@I: o2 t1e *ross %+5(ent 2or t1e %"r41+se o2 *oo&s +n& si' %er4ent 7EI:
on *ross re4ei%ts 2or ser!i4es ren&ere& ,5 4ontr+4tors on e!er5 s+)e or
inst+))(ent %+5(ent <1i41 s1+)) ,e Bre!53a4le a7a523 39e Cal8e-a!!e!
3aE l5a45l53y o: 39e 2eller or Bo3raB3or: Pro!i&e&, 1o<e!er, T1+t in t1e
4+se o2 *o!ern(ent %",)i4 <or=s 4ontr+4tors, t1e <it11o)&in* r+te s1+)) ,e
ei*1t +n& one-1+)2 %er4ent 79.0I:: Pro!i&e&, 2"rt1er, T1+t t1e %+5(ent 2or
)e+se or "se o2 %ro%erties or %ro%ert5 ri*1ts to nonresi&ent o<ners s1+)) ,e
s",3e4t to ten %er4ent 7-/I: <it11o)&in* t+' +t t1e ti(e o2 %+5(ent. ;or
t1is %"r%ose, t1e %+5or or %erson in 4ontro) o2 t1e %+5(ent s1+)) ,e
4onsi&ere& +s t1e <it11o)&in* +*ent.

T1e !+)"e&-+&&e& t+' <it11e)& "n&er t1is Se4tion s1+)) ,e
re(itte& <it1in ten 7-/: &+5s 2o))o<in* t1e en& o2 t1e (ont1 t1e
<it11o)&in* <+s (+&e. 7E(%1+sis s"%%)ie&:


As +(en&e&, t1e "se o2 t1e <or& $inal +n& t1e &e)etion o2 t1e <or&
creditable e'1i,its #on*ressHs intention to tre+t tr+ns+4tions <it1 t1e
*o!ern(ent &i22erent)5. Sin4e it 1+s not ,een s1o<n t1+t t1e 4)+ss s",3e4t to
t1e 0I 2in+) <it11o)&in* t+' 1+s ,een "nre+son+,)5 n+rro<e&, t1ere is no
re+son to in!+)i&+te t1e %ro!ision. Petitioners, +s %etro)e"( &e+)ers, +re not
t1e on)5 ones s",3e4te& to t1e 0I 2in+) <it11o)&in* t+'. It +%%)ies to +))
t1ose <1o &e+) <it1 t1e *o!ern(ent.

Moreo!er, t1e +4t"+) in%"t t+' is not tot+))5 )ost or "n4re&it+,)e, +s
%etitioners ,e)ie!e. Re!en"e Re*")+tions No. -D-.//0 or t1e #onso)i&+te&
V+)"e-A&&e& T+' Re*")+tions .//0 iss"e& ,5 t1e BIR, %ro!i&es t1+t s1o")&
t1e +4t"+) in%"t t+' e'4ee& 0I o2 *ross %+5(ents, t1e e'4ess (+5 2or( %+rt
o2 t1e 4ost. E6"+))5, s1o")& t1e +4t"+) in%"t t+' ,e )ess t1+n 0I, t1e
&i22eren4e is tre+te& +s in4o(e.
A9-B


Petitioners +)so +r*"e t1+t ,5 i(%osin* + )i(it+tion on t1e 4re&it+,)e
in%"t t+', t1e *o!ern(ent *ets to t+' + %ro2it or !+)"e-+&&e& e!en i2 t1ere is
no %ro2it or !+)"e-+&&e&.

PetitionersH st+n4e is %"re)5 15%ot1eti4+), +r*"(ent+ti!e, +n& +*+in,
one-si&e&. T1e #o"rt <i)) not en*+*e in + )e*+) 3o"st <1ere %re(ises +re
<1+t i2s, +r*"(ents, t1eoreti4+) +n& 2+4ts, "n4ert+in. An5 &is6"isition ,5 t1e
#o"rt on t1is %oint <i)) on)5 ,e, +s S1+=es%e+re &es4ri,es )i2e in ?acbeth,
A9.B
F2")) o2 so"n& +n& 2"r5, si*ni25in* not1in*.G

C1+tHs (ore, %etitionersH 4ontention +ss"(es t1e %ro%osition t1+t
t1ere is no %ro2it or !+)"e-+&&e&. It nee& not t+=e +n +st"te ,"siness(+n to
=no< t1+t it is + (+tter o2 e'4e%tion t1+t + ,"siness <i)) se)) *oo&s or
ser!i4es <it1o"t %ro2it or !+)"e-+&&e&. It 4+nnot ,e o!erstresse& t1+t +
,"siness is 4re+te& %re4ise)5 2or %ro2it.

T1e e6"+) %rote4tion 4)+"se "n&er t1e #onstit"tion (e+ns t1+t Fno
%erson or 4)+ss o2 %ersons s1+)) ,e &e%ri!e& o2 t1e s+(e %rote4tion o2 )+<s
<1i41 is en3o5e& ,5 ot1er %ersons or ot1er 4)+sses in t1e s+(e %)+4e +n& in
)i=e 4ir4"(st+n4es.G
A9@B


T1e %o<er o2 t1e St+te to (+=e re+son+,)e +n& n+t"r+) 4)+ssi2i4+tions
2or t1e %"r%oses o2 t+'+tion 1+s )on* ,een est+,)is1e&. C1et1er it re)+tes to
t1e s",3e4t o2 t+'+tion, t1e =in& o2 %ro%ert5, t1e r+tes to ,e )e!ie&, or t1e
+(o"nts to ,e r+ise&, t1e (et1o&s o2 +ssess(ent, !+)"+tion +n& 4o))e4tion,
t1e St+teHs %o<er is entit)e& to %res"(%tion o2 !+)i&it5. As + r")e, t1e
3"&i4i+r5 <i)) not inter2ere <it1 s"41 %o<er +,sent + 4)e+r s1o<in* o2
"nre+son+,)eness, &is4ri(in+tion, or +r,itr+riness.
A9DB


Petitioners %oint o"t t1+t t1e )i(it+tion on t1e 4re&it+,)e in%"t t+' i2
t1e entit5 1+s + 1i*1 r+tio o2 in%"t t+', or in!ests in 4+%it+) e6"i%(ent, or 1+s
se!er+) tr+ns+4tions <it1 t1e *o!ern(ent, is not ,+se& on re+) +n& s",st+nti+)
&i22eren4es to (eet + !+)i& 4)+ssi2i4+tion.

T1e +r*"(ent is %e&+nti4, i2 not o"tri*1t ,+se)ess. T1e )+< &oes not
(+=e +n5 4)+ssi2i4+tion in t1e s",3e4t o2 t+'+tion, t1e =in& o2 %ro%ert5, t1e
r+tes to ,e )e!ie& or t1e +(o"nts to ,e r+ise&, t1e (et1o&s o2 +ssess(ent,
!+)"+tion +n& 4o))e4tion. PetitionersH +))e*e& &istin4tions +re ,+se& on
!+ri+,)es t1+t ,e+r &i22erent 4onse6"en4es. C1i)e t1e i(%)e(ent+tion o2 t1e
)+< (+5 5ie)& !+r5in* en& res")ts &e%en&in* on oneHs %ro2it (+r*in +n&
!+)"e-+&&e&, t1e #o"rt 4+nnot *o ,e5on& <1+t t1e )e*is)+t"re 1+s )+i& &o<n
+n& inter2ere <it1 t1e +22+irs o2 ,"siness.

T1e e6"+) %rote4tion 4)+"se &oes not re6"ire t1e "ni!ers+) +%%)i4+tion
o2 t1e )+<s on +)) %ersons or t1in*s <it1o"t &istin4tion. T1is (i*1t in 2+4t
so(eti(es res")t in "ne6"+) %rote4tion. C1+t t1e 4)+"se re6"ires is e6"+)it5
+(on* e6"+)s +s &eter(ine& +44or&in* to + !+)i& 4)+ssi2i4+tion. B5
4)+ssi2i4+tion is (e+nt t1e *ro"%in* o2 %ersons or t1in*s si(i)+r to e+41 ot1er
in 4ert+in %+rti4")+rs +n& &i22erent 2ro( +)) ot1ers in t1ese s+(e %+rti4")+rs.
A90B

Petitioners ,ro"*1t to t1e #o"rtHs +ttention t1e intro&"4tion o2 Sen+te
Bi)) No. ./@9 ,5 Sens. S.R. Os(eV+ III +n& M+. An+ #ons"e)o A.S. P
M+&ri*+) on J"ne E, .//0, +n& $o"se Bi)) No. DD?@ ,5 Re%. Eri4 D.
Sin*son. T1e %ro%ose& )e*is)+tion see=s to +(en& t1e 8/I )i(it+tion ,5
in4re+sin* t1e s+(e to ?/I. T1is, +44or&in* to %etitioners, s"%%orts t1eir
st+n4e t1+t t1e 8/I )i(it+tion is +r,itr+r5 +n& 4on2is4+tor5. On t1is s4ore,
s"22i4e it to s+5 t1+t t1ese +re sti)) %ro%ose& )e*is)+tions. Unti) #on*ress
+(en&s t1e )+<, +n& +,sent +n5 "ne6"i!o4+) ,+sis 2or its "n4onstit"tion+)it5,
t1e 8/I )i(it+tion st+5s.

B. Uni$or&ity and )>uitability o$ #a*ation


Arti4)e VI, Se4tion .97-: o2 t1e #onstit"tion re+&s:

T1e r")e o2 t+'+tion s1+)) ,e "ni2or( +n& e6"it+,)e. T1e #on*ress
s1+)) e!o)!e + %ro*ressi!e s5ste( o2 t+'+tion.


Uni2or(it5 in t+'+tion (e+ns t1+t +)) t+'+,)e +rti4)es or =in&s o2
%ro%ert5 o2 t1e s+(e 4)+ss s1+)) ,e t+'e& +t t1e s+(e r+te. Di22erent +rti4)es
(+5 ,e t+'e& +t &i22erent +(o"nts %ro!i&e& t1+t t1e r+te is "ni2or( on t1e
s+(e 4)+ss e!er5<1ere <it1 +)) %eo%)e +t +)) ti(es.
A9EB

In t1is 4+se, t1e t+' )+< is "ni2or( +s it %ro!i&es + st+n&+r& r+te o2 /I
or -/I 7or -.I: on +)) *oo&s +n& ser!i4es. Se4tions D, 0 +n& E o2 R.A. No.
?@@8, +(en&in* Se4tions -/E, -/8 +n& -/9, res%e4ti!e)5, o2 t1e NIR#,
%ro!i&e 2or + r+te o2 -/I 7or -.I: 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 + /I 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 <i)) ,e+r t1e 8/I )i(it+tion on t1e 4re&it+,)e in%"t t+', 0-5e+r
+(ortiK+tion o2 in%"t t+' %+i& on %"r41+se o2 4+%it+) *oo&s or t1e 0I 2in+)
<it11o)&in* t+' ,5 t1e *o!ern(ent. It ("st ,e stresse& t1+t t1e r")e o2
"ni2or( t+'+tion &oes not &e%ri!e #on*ress o2 t1e %o<er to 4)+ssi25 s",3e4ts
o2 t+'+tion, +n& on)5 &e(+n&s "ni2or(it5 <it1in t1e %+rti4")+r 4)+ss.
A98B

R.A. No. ?@@8 is +)so e6"it+,)e. T1e )+< is e6"i%%e& <it1 + t1res1o)&
(+r*in. T1e VAT r+te o2 /I or -/I 7or -.I: &oes not +%%)5 to s+)es o2
*oo&s or ser!i4es <it1 *ross +nn"+) s+)es or re4ei%ts not e'4ee&in*
P-,0//,///.//.
A99B
A)so, ,+si4 (+rine +n& +*ri4")t"r+) 2oo& %ro&"4ts in t1eir
ori*in+) st+te +re sti)) not s",3e4t to t1e t+',
A9?B
t1"s ens"rin* t1+t %ri4es +t t1e
*r+ssroots )e!e) <i)) re(+in +44essi,)e. As <+s st+te& in Kapatiran n. &.a
/a.lilin.@od sa Pa&ahalaan n. Pilipinas, 3nc. vs. #an:
A?/B


T1e &is%"te& s+)es t+' is +)so e6"it+,)e. It is i(%ose& on)5 on s+)es
o2 *oo&s or ser!i4es ,5 %ersons en*+*e& in ,"siness <it1 +n +**re*+te
*ross +nn"+) s+)es e'4ee&in* P.//,///.//. S(+)) 4orner sari-sari stores
+re 4onse6"ent)5 e'e(%t 2ro( its +%%)i4+tion. Li=e<ise e'e(%t 2ro( t1e
t+' +re s+)es o2 2+r( +n& (+rine %ro&"4ts, so t1+t t1e 4osts o2 ,+si4 2oo&
+n& ot1er ne4essities, s%+re& +s t1e5 +re 2ro( t1e in4i&en4e o2 t1e VAT, +re
e'%e4te& to ,e re)+ti!e)5 )o<er +n& <it1in t1e re+41 o2 t1e *ener+) %",)i4.


It is +&(itte& t1+t R.A. No. ?@@8 %"ts + %re(i"( on ,"sinesses <it1
)o< %ro2it (+r*ins, +n& "n&")5 2+!ors t1ose <it1 1i*1 %ro2it (+r*ins.
#on*ress <+s not o,)i!io"s to t1is. T1"s, to e6"+)iKe t1e <ei*1t5 ,"r&en t1e
)+< ent+i)s, t1e )+<, "n&er Se4tion --E, i(%ose& + @I %er4ent+*e t+' on
VAT-e'e(%t %ersons "n&er Se4tion -/?7!:, i.e., tr+ns+4tions <it1 *ross
+nn"+) s+)es +n&Lor re4ei%ts not e'4ee&in* P-.0 Mi))ion. T1is +4ts +s +
e6"+)iKer ,e4+"se in e22e4t, ,i**er ,"sinesses t1+t 6"+)i25 2or VAT 4o!er+*e
+n& VAT-e'e(%t t+'%+5ers st+n& on e6"+)-2ootin*.

Moreo!er, #on*ress %ro!i&e& (iti*+tin* (e+s"res to 4"s1ion t1e
i(%+4t o2 t1e i(%osition o2 t1e t+' on t1ose %re!io"s)5 e'e(%t. E'4ise t+'es
on %etro)e"( %ro&"4ts
A?-B
+n& n+t"r+) *+s
A?.B
<ere re&"4e&. Per4ent+*e t+' on
&o(esti4 4+rriers <+s re(o!e&.
A?@B
Po<er %ro&"4ers +re no< e'e(%t 2ro(
%+5in* 2r+n41ise t+'.
A?DB

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 + @0I in4o(e t+'
r+te, 2ro( + %re!io"s @.I.
A?0B
Inter4or%or+te &i!i&en&s o2 non-resi&ent
2orei*n 4or%or+tions +re sti)) s",3e4t to -0I 2in+) <it11o)&in* t+' ,"t t1e t+'
4re&it +))o<e& on t1e 4or%or+tionHs &o(i4i)e <+s in4re+se& to ./I.
A?EB
T1e
P1i)i%%ine A("se(ent +n& G+(in* #or%or+tion 7PAG#OR: is not e'e(%t
2ro( in4o(e t+'es +n5(ore.
A?8B
E!en t1e s+)e ,5 +n +rtist o2 1is <or=s or
ser!i4es %er2or(e& 2or t1e %ro&"4tion o2 s"41 <or=s <+s not s%+re&.

A)) t1ese <ere &esi*ne& to e+se, +s <e)) +s s%re+& o"t, t1e ,"r&en o2
t+'+tion, <1i41 <o")& ot1er<ise rest )+r*e)5 on t1e 4ons"(ers. It 4+nnot
t1ere2ore ,e *+ins+i& t1+t R.A. No. ?@@8 is e6"it+,)e.

'. Pro.ressivity o$ #a*ation


L+st)5, %etitioners 4onten& t1+t t1e )i(it+tion on t1e 4re&it+,)e in%"t
t+' is +n5t1in* ,"t re*ressi!e. It is t1e s(+))er ,"siness <it1 1i*1er in%"t
t+'-o"t%"t t+' r+tio t1+t <i)) s"22er t1e 4onse6"en4es.

Pro*ressi!e t+'+tion is ,"i)t on t1e %rin4i%)e o2 t1e t+'%+5erHs +,i)it5
to %+5. T1is %rin4i%)e <+s +)so )i2te& 2ro( A&+( S(it1Hs 'anons o$
#a*ation, +n& it st+tes:

I. T1e s",3e4ts o2 e!er5 st+te o"*1t to 4ontri,"te to<+r&s t1e s"%%ort
o2 t1e *o!ern(ent, +s ne+r)5 +s %ossi,)e, in %ro%ortion to t1eir
res%e4ti!e +,i)itiesM t1+t is, in %ro%ortion to t1e re!en"e <1i41 t1e5
res%e4ti!e)5 en3o5 "n&er t1e %rote4tion o2 t1e st+te.
T+'+tion is %ro*ressi!e <1en its r+te *oes "% &e%en&in* on t1e
reso"r4es o2 t1e %erson +22e4te&.
A?9B

T1e VAT is +n +ntit1esis o2 %ro*ressi!e t+'+tion. B5 its !er5 n+t"re, it
is re*ressi!e. T1e %rin4i%)e o2 %ro*ressi!e t+'+tion 1+s no re)+tion <it1 t1e
VAT s5ste( in+s("41 +s t1e VAT %+i& ,5 t1e 4ons"(er or ,"siness 2or
e!er5 *oo&s ,o"*1t or ser!i4es en3o5e& is t1e s+(e re*+r&)ess o2 in4o(e. In
ot1er <or&s, t1e VAT %+i& e+ts t1e s+(e %ortion o2 +n in4o(e, <1et1er ,i*
or s(+)). T1e &is%+rit5 )ies in t1e in4o(e e+rne& ,5 + %erson or %ro2it
(+r*in (+r=e& ,5 + ,"siness, s"41 t1+t t1e 1i*1er t1e in4o(e or %ro2it
(+r*in, t1e s(+))er t1e %ortion o2 t1e in4o(e or %ro2it t1+t is e+ten ,5 VAT.
A converso, t1e )o<er t1e in4o(e or %ro2it (+r*in, t1e ,i**er t1e %+rt t1+t
t1e VAT e+ts +<+5. At t1e en& o2 t1e &+5, it is re+))5 t1e )o<er in4o(e *ro"%
or ,"sinesses <it1 )o<-%ro2it (+r*ins t1+t is +)<+5s 1+r&est 1it.

Ne!ert1e)ess, t1e #onstit"tion &oes not re+))5 %ro1i,it t1e i(%osition
o2 in&ire4t t+'es, )i=e t1e VAT. C1+t it si(%)5 %ro!i&es is t1+t #on*ress
s1+)) Te!o)!e + %ro*ressi!e s5ste( o2 t+'+tion.T T1e #o"rt st+te& in t1e
#olentino case, t1"s:

T1e #onstit"tion &oes not re+))5 %ro1i,it t1e i(%osition o2 in&ire4t
t+'es <1i41, )i=e t1e VAT, +re re*ressi!e. C1+t it si(%)5 %ro!i&es is t1+t
#on*ress s1+)) Qe!o)!e + %ro*ressi!e s5ste( o2 t+'+tion.H T1e
4onstit"tion+) %ro!ision 1+s ,een inter%rete& to (e+n si(%)5 t1+t Q&ire4t
t+'es +re . . . to ,e %re2erre& A+n&B +s ("41 +s %ossi,)e, in&ire4t t+'es
s1o")& ,e (ini(iKe&.H 7E. ;ERNANDO, T$E #ONSTITUTION O;
T$E P$ILIPPINES ..- 7Se4on& e&. -?88:: In&ee&, t1e (+n&+te to
#on*ress is not to %res4ri,e, ,"t to e!o)!e, + %ro*ressi!e t+' s5ste(.
Ot1er<ise, s+)es t+'es, <1i41 %er1+%s +re t1e o)&est 2or( o2 in&ire4t t+'es,
<o")& 1+!e ,een %ro1i,ite& <it1 t1e %ro4)+(+tion o2 Art. VIII, W-8 7-: o2
t1e -?8@ #onstit"tion 2ro( <1i41 t1e %resent Art. VI, W.9 7-: <+s t+=en.
S+)es t+'es +re +)so re*ressi!e.

Resort to in&ire4t t+'es s1o")& ,e (ini(iKe& ,"t not +!oi&e&
entire)5 ,e4+"se it is &i22i4")t, i2 not i(%ossi,)e, to +!oi& t1e( ,5
i(%osin* s"41 t+'es +44or&in* to t1e t+'%+5ersS +,i)it5 to %+5. In t1e 4+se
o2 t1e VAT, t1e )+< (ini(iKes t1e re*ressi!e e22e4ts o2 t1is i(%osition ,5
%ro!i&in* 2or Kero r+tin* o2 4ert+in tr+ns+4tions 7R.A. No. 88-E, W@,
+(en&in* W-/. 7,: o2 t1e NIR#:, <1i)e *r+ntin* e'e(%tions to ot1er
tr+ns+4tions. 7R.A. No. 88-E, WD +(en&in* W-/@ o2 t1e NIR#:
A??B


CONCLUSION

It 1+s ,een s+i& t1+t t+'es +re t1e )i2e,)oo& o2 t1e *o!ern(ent. In t1is
4+se, it is 3"st +n ene(+, + 2irst-+i& (e+s"re to res"s4it+te +n e4ono(5 in
&istress. T1e #o"rt is neit1er ,)in& nor is it t"rnin* + &e+2 e+r on t1e %)i*1t
o2 t1e (+sses. B"t it &oes not 1+!e t1e %+n+4e+ 2or t1e (+)+&5 t1+t t1e )+<
see=s to re(e&5. As in ot1er 4+ses, t1e #o"rt 4+nnot stri=e &o<n + )+< +s
"n4onstit"tion+) si(%)5 ,e4+"se o2 its 5o=es.

Let "s not ,e o!er)5 in2)"en4e& ,5 t1e %)e+ t1+t 2or e!er5 <ron*
t1ere is + re(e&5, +n& t1+t t1e 3"&i4i+r5 s1o")& st+n& re+&5 to +22or& re)ie2.
T1ere +re "n&o",te&)5 (+n5 <ron*s t1e 3"&i4+t"re (+5 not 4orre4t, 2or
inst+n4e, t1ose in!o)!in* %o)iti4+) 6"estions. . . .

Let "s )i=e<ise &is+,"se o"r (in&s 2ro( t1e notion t1+t t1e
3"&i4i+r5 is t1e re%ositor5 o2 re(e&ies 2or +)) %o)iti4+) or so4i+) i))sM Ce
s1o")& not 2or*et t1+t t1e #onstit"tion 1+s 3"&i4io"s)5 +))o4+te& t1e %o<ers
o2 *o!ern(ent to t1ree &istin4t +n& se%+r+te 4o(%+rt(entsM +n& t1+t
3"&i4i+) inter%ret+tion 1+s ten&e& to t1e %reser!+tion o2 t1e in&e%en&en4e
o2 t1e t1ree, +n& + Ke+)o"s re*+r& o2 t1e %rero*+ti!es o2 e+41, =no<in* 2"))
<e)) t1+t one is not t1e *"+r&i+n o2 t1e ot1ers +n& t1+t, 2or o22i4i+) <ron*-
&oin*, e+41 (+5 ,e ,ro"*1t to +44o"nt, eit1er ,5 i(%e+41(ent, tri+) or ,5
t1e ,+))ot ,o'.
A-//B


T1e <or&s o2 t1e #o"rt in +era vs. Avelino
A-/-B
1o)&s tr"e t1en, +s it
sti)) 1o)&s tr"e no<. A)) t1in*s 4onsi&ere&, t1ere is no raison dABtre 2or t1e
"n4onstit"tion+)it5 o2 R.A. No. ?@@8.

C$ERE;ORE, Re%",)i4 A4t No. ?@@8 not ,ein* "n4onstit"tion+), t1e
%etitions in G.R. Nos. -E9/0E, -E9./8, -E9DE-, -E9DE@, +n& -E98@/, +re
1ere,5 DISMISSED.

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-MARTINE=
Asso4i+te J"sti4e




CE #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




ANGELINA SANDO"AL-GUTIERRE=
Asso4i+te J"sti4e
ANTONIO T. CARPIO
Asso4i+te J"sti4e




RENATO C. CORONA
Asso4i+te J"sti4e
CONC)ITA CARPIO-MORALES
Asso4i+te J"sti4e




ROMEO J. CALLEJO# SR.
Asso4i+te J"sti4e
ADOLFO S. A=CUNA
Asso4i+te
J"sti4e




DANTE O. TINGA MINITA ". C)ICO-NA=ARIO
Asso4i+te J"sti4e Asso4i+te
J"sti4e




CANCIO C. GARCIA
Asso4i+te J"sti4e







C E R T I F I C A T I O N


P"rs"+nt to Se4tion -@, Arti4)e VIII o2 t1e #onstit"tion, it is 1ere,5
4erti2ie& t1+t t1e 4on4)"sions in t1e +,o!e De4ision <ere re+41e& in
4ons")t+tion ,e2ore t1e 4+se <+s +ssi*ne& to t1e <riter o2 t1e o%inion o2 t1e
#o"rt.




)ILARIO G. DA"IDE# JR.
#1ie2 J"sti4e
A-B
Entit)e& FAn A4t A(en&in* Se4tions .8, .9, @D, -/E, -/8, -/9, -/?, --/, ---, --., --@, --D,
--E, --8, --?, -.-, -D9, -0-, .@E, .@8, +n& .99 o2 t1e N+tion+) Intern+) Re!en"e #o&e o2 -??8,
As A(en&e& +n& ;or Ot1er P"r%oses.G
A.B
Entit)e&, FAn A4t Restr"4t"rin* t1e V+)"e-A&&e& T+', A(en&in* 2or t1e P"r%ose Se4tions -/E,
-/8, -/9, --/ +n& --D o2 t1e N+tion+) Intern+) Re!en"e #o&e o2 -??8, As A(en&e&, +n& ;or
Ot1er P"r%oses.G
A@B
Entit)e&, FAn A4t A(en&in* Se4tions -/E, -/8, -/9, -/?, --/ +n& --- o2 t1e N+tion+) Intern+)
Re!en"e #o&e o2 -??8, As A(en&e&, +n& ;or Ot1er P"r%oses.G
ADB
Entit)e&, FAn A4t A(en&in* Se4tions .8, .9, @D, -/E, -/9, -/?, --/, --., --@, --D, --E, --8,
--?, -.-, -.0, -D9, -0-, .@E, .@8 +n& .99 o2 t1e N+tion+) Intern+) Re!en"e #o&e o2 -??8, As
A(en&e&, +n& ;or Ot1er P"r%oses.G
A0B
Se4tion .E, R.A. No. ?@@8.
AEB
TSN, J")5 -D, .//0.
A8B
Se4tion -.0 o2 t1e N+tion+) Intern+) Re!en"e #o&e, +s +(en&e&, <+s not +(en&e& ,5 R.A. No.
?@@8, +s 4+n ,e *)e+ne& 2ro( t1e tit)e +n& ,o&5 o2 t1e )+<.
A9B
Se4tion -/0, N+tion+) Intern+) Re!en"e o2 t1e P1i)i%%ines, +s +(en&e&.
A?B
3bid.
A-/B
Deo2erio, Jr., V.A. +n& M+(+)+teo, V.#., #he +alue Added #a* in the Philippines 7;irst E&ition
.///:.
A--B
M+4e&+ !s. M+4+r+i*, Jr., G.R. No. 99.?-, M+5 @-, -??-, -?8 S#RA 88-.
A-.B
M+4e&+ !s. M+4+r+i*, Jr., G.R. No. 99.?-, J"ne 9, -??@, ..@ S#RA, .-8.
A-@B
3d., Deo2erio, Jr., V.A. +n& M+(+)+teo, V.#., #he +alue Added #a* in the Philippines 7;irst
E&ition .///:.
A-DB
#o((issioner o2 Intern+) Re!en"e !s. Se+*+te, G.R. No. -0@9EE, ;e,r"+r5 --, .//0.
A-0B
X+%+tir+n n* (*+ N+*)i)in*=o& s+ P+(+1+)++n n* Pi)i%in+s, In4. !s. T+n, G.R. Nos. L-9-@--, L-
9-9./, L-9-?.-, L-9.-0., J"ne @/, -?99, -E@ S#RA @8-.
A-EB
Entit)e&, FAn A4t Restr"4t"rin* t1e V+)"e-A&&e& T+' 7VAT: S5ste(, Ci&enin* its T+' B+se +n&
En1+n4in* its A&(inistr+tion, An& 2or t1ese P"r%oses A(en&in* +n& Re%e+)in* t1e Re)e!+nt
Pro!isions o2 t1e N+tion+) Intern+) Re!en"e #o&e, +s +(en&e&, +n& 2or ot1er P"r%oses.G
A-8B
Entit)e&, FAn A4t A(en&in* Re%",)i4 A4t No. 88-E, ot1er<ise =no<n +s t1e V+)"e-A&&e& T+'
L+< +n& Ot1er Pertinent Pro!isions o2 t1e N+tion+) Intern+) Re!en"e #o&e, +s A(en&e&.G
A-9B
Entit)e&, FAn A4t A(en&in* t1e N+tion+) Intern+) Re!en"e #o&e, +s A(en&e&, +n& 2or ot1er
P"r%oses.G
A-?B
Stor5, #o((ent+ries 9@0 7-9@@:.
A./B
G.R. No. -D8@98, De4e(,er -/, .//@, D-8 S#RA 0/@.
A.-B
3d., %%. 0.?-0@/.
A..B
Supra., Note ./.
A.@B
G.R. No. --0D00, A"*"st .0, -??D, .@0 S#RA E@/.
A.DB
3d., %. E8/.
A.0B
CesterHs T1ir& Ne< Intern+tion+) Di4tion+r5, %. -9?8.
A.EB
TSN, Bi4+(er+) #on2eren4e #o((ittee on t1e Dis+*reein* Pro!isions o2 Sen+te Bi)) No. -?0/
+n& $o"se Bi)) Nos. @8/0 +n& @000, M+5 -/, .//0, %. D.
A.8B
3d., %. @.
A.9B
S%onsors1i% S%ee41 o2 Re%resent+ti!e Te!es, in ,e1+)2 o2 Re%resent+ti!e Jes)i L+%"s, TSN,
J+n"+r5 8, .//0, %%. @D-@0.
A.?B
G.R. No. -/0@8-, No!e(,er --, -??@, ..8 S#RA 8/@.
A@/B
Supra, Note .@.
A@-B
3d., %. EE9.
A@.B
3d., %. E8-.
A@@B
3d., %%. EE--EE@.
A@DB
Tr+ns4ri%t o2 Session Pro4ee&in*s, J+n"+r5 8, .//0, %%. -?-./.
A@0B
Jo"rn+) o2 t1e Sen+te, Session No. E8, M+r41 8, .//0, %%. 8.8-8.9.
A@EB
3d., %. 8.E.
A@8B
See An*+r+ !s. E)e4tor+) #o((ission, No. D0/9-, J")5 -0, -?@E, E@ P1i). -@?, -0E.
A@9B
De2ensor-S+nti+*o !s. #o((ission on E)e4tions, G.R. No. -.8@.0, M+r41 -?, -??8, .8/ S#RA
-/E, -0@M Peo%)e !s. Rosent1+), Nos. DE/8E Y DE/88, J"ne -., -?@?, E9 P1i). @.9M ISAGANI A.
#RU, P1i)i%%ine Po)iti4+) L+< 9E 7-??E:. J"&*e #oo)e5 en"n4i+tes t1e &o4trine in t1e 2o))o<in*
o2t-6"ote& )+n*"+*e: TOne o2 t1e sett)e& (+'i(s in 4onstit"tion+) )+< is, t1+t t1e %o<er 4on2erre&
"%on t1e )e*is)+t"re to (+=e )+<s 4+nnot ,e &e)e*+te& ,5 t1+t &e%+rt(ent to +n5 ot1er ,o&5 or
+"t1orit5. C1ere t1e so!erei*n %o<er o2 t1e st+te 1+s )o4+te& t1e +"t1orit5, t1ere it ("st re(+inM
+n& ,5 t1e 4onstit"tion+) +*en45 +)one t1e )+<s ("st ,e (+&e "nti) t1e #onstit"tion itse)2 is
41+n*e&. T9e 1oIer 3o I9o2e J8!7me3# I52!om# a! 1a3r5o352m 3952 9579 1rero7a35Ce 9a2
4ee 53r823e! Bao3 rel5eCe 532el: o: 39e re21o2545l53y 4y B9oo257 o39er a7eB5e2 81o
I95B9 39e 1oIer 29all 4e !eColCe!# or Ba 53 284235383e 39e J8!7me3# I52!om# a!
1a3r5o352m o: ay o39er 4o!y :or 39o2e 3o I95B9 aloe 39e 1eo1le 9aCe 2ee :53 3o Bo:5!e 3952
2oCere57 3r823.T 7#oo)e5 on #onstit"tion+) Li(it+tions, 9t1 e&., Vo). I, %. ..D:
A@?B
Unite& St+tes !s. B+rri+s, No. D@D?, Se%te(,er .D, -?/9, -- P1i). @.8, @@/.
AD/B
-E A( J"r .&, #onstit"tion+) L+<, W @@8.
AD-B
Pe)+eK !s. A"&itor Gener+), No. L-.@9.0, De4e(,er .D, -?E0, -.. P1i). ?E0, ?8D 4itin* #+)+)+n*
!s. Ci))i+(s, No. D89//, De4e(,er ., -?D/, 8/ P1i). 8.EM P+n*+sin+n Tr+ns%. #o. !s. P",)i4
Ser!i4e #o((ission, No. D8/E0, J"ne .E, -?D/, 8/ P1i). ..-M #r"K !s. Yo"n*,er*, No. @DE8D,
O4to,er .E, -?@-, 0E P1i). .@DM A)e*re !s. #o))e4tor o2 #"sto(s, No. @/89@, A"*"st .8, -?.?, 0@
P1i). @?D et se>.
AD.B
Pe)+eK !s. A"&itor Gener+), supra, 4itin* Peo%)e !s. Li( $o, No. L--./?--., J+n"+r5 .9, -?E/,
-/E P1i). 998M Peo%)e !s. Jo))i22ee, No. L-?00@, M+5 -@, -?0?, -/0 P1i) E88M Peo%)e !s. Ver+, No.
D0E90, No!e(,er -E, -?@8, E0 P1i). 0EM U.S. !s. N+* T+n* $o, No. L--8-.., ;e,r"+r5 .8, -?..,
D@ P1i). -M #o(%+Vi+ Gener+) &e T+,+4os !s. Bo+r& o2 P",)i4 Uti)it5, No. --.-E, M+r41 E, -?-E,
@D P1i). -@E et se>.
AD@B
E&" !s. Eri4t+, No. L-@./?E, O4to,er .D, -?8/, @0 S#RA D9-, D?8.
ADDB
E+stern S1i%%in* Lines, In4. !s. POEA, No. L-8EE@@, O4to,er -9, -?99, -EE S#RA 0@@, 0D@-
0DD.
AD0B
No. D0E90, No!e(,er -E, -?@8, E0 P1i). 0E.
ADEB
3d., %%. --0--./.
AD8B
Supra, note D@.
AD9B
3d., %%. D?E-D?8.
AD?B
-E #.J.S., #onstit"tion+) L+<, W -@9.
A0/B
3bid.
A0-B
-E A( J"r .&, #onstit"tion+) L+< W @D/.
A0.B
Y+3"s !s. Unite& St+tes, @.- US D-D, 99 L E& 9@D, ED S #t. EE/, .9 O1io O%s ../.
A0@B
Pro!in4e o2 B+t+n*+s !s. Ro(")o, G.R. No. -0.88D, M+5 .8, .//DM Enri6"eK !s. #o"rt o2
A%%e+)s, G.R. No. -D/D8@, J+n"+r5 .9, .//@, @?E S#RA @88M #o&o5 !s. #+)"*+5, G.R. No.
-.@D9E, A"*"st -., -???, @-. S#RA @@@.
A0DB
Pro!in4e o2 B+t+n*+s !s. Ro(")o, supraM Q"is"(,in* !s. Mer+)4o, G.R. No. -D.?D@, A%ri) @,
.//., @9/ S#RA -?0M A*%+)o, St+t"tor5 #onstr"4tion, -??/ e&., %. D0.
A00B
Vi))en+ !s. Se4ret+r5 o2 Interior, No. DE08/, A%ri) .-, -?@?, E8 P1i) D0-, DE@-DED.
A0EB
A)"n+n !s. Mir+so), G.R. No. -/9@??, J")5 @-, -??8, .8E S#RA 0/-, 0-@-0-D, 4itin* P+n+(+
Re2inin* #o. !s. R5+n, .?@ U.S. @99, 8? L.E&. DE? 7-?@0:.
A08B
#o(%+Vi+ Gener+) &e T+,+4os &e ;i)i%in+s !s. T1e Bo+r& o2 P",)i4 Uti)it5 #o((issioners, No.
--.-E, @D P1i). -@EM #r"K !s. Yo"n*,er*, No. @DE8D, O4to,er .E, -?@-, 0E P1i). .@DM Peo%)e !s.
Ver+, No. D0E90, No!e(,er -E, -?@8, E0 P1i). 0E, --@M E&" !s. Eri4t+, No. L-@./?E, O4to,er .D,
-?8/, @0 S#RA D9-M T+t+& !s. Se4ret+r5 o2 t1e De%+rt(ent o2 Ener*5, G.R. No. -.D@E/,
No!e(,er 0, -??8, .9- S#RA @@/M A)"n+n !s. Mir+so), supra.
A09B
Bo<)es !s. Ci))in*1+n, @.- US 0/@, 99 ) E& 9?., ED S #t ED-, .9 O1io O%s -9/.
A0?B
Unite& Resi&ents o2 Do(ini4+n $i)), In4. !s. #o((ission on t1e Sett)e(ent o2 L+n& Pro,)e(s,
G.R. No. -@0?D0, M+r41 8, .//-, @0@ S#RA 89.M #o((issioner o2 Intern+) Re!en"e !s. S+ntos,
G.R. No. --?.0., A"*"st -9, -??8, .88 S#RA E-8, E@/.
AE/B
#o((ission on Intern+) Re!en"e !s. A(eri4+n E'%ress Intern+tion+), In4. 7P1i)i%%ine Br+n41:,
G.R. No. -0.E/?, J"ne .?, .//0.
AE-B
A4tin* #o((issioner o2 #"sto(s !s. MERAL#O, No. L-.@E.@, J"ne @/, -?88, 88 S#RA DE?,
D8@.
AE.B
Res%on&entsH Me(or+n&"(, %%. -E9--E?.
AE@B
#he Cealth o$ /ations, Boo= V, #1+%ter II.
AEDB
#1+!eK !s. On*%in, G.R. No. 8E889, J"ne E, -??/, -9E S#RA @@-, @@9.
AE0B
TSN, Bi4+(er+) #on2eren4e #o((ittee on t1e Dis+*reein* Pro!isions o2 Sen+te Bi)) No. -?0/
+n& $o"se Bi)) Nos. @8/0 +n& @000, A%ri) .0, .//0, %%. 0-E.
AEEB
G.R. No. -D8@98, De4e(,er -/, .//@, D-8 S#RA 0/@, 0.D.
AE8B
N+tion+) $o"sin* A"t1orit5 !s. Re5es, G.R. No. L-D?D@?, J"ne .?, -?9@, -.@ S#RA .D0, .D?.
AE9B
Sison !s. An41et+, G.R. No. L-0?D@-, J")5 .0, -?9D, -@/ S#RA E0D, EE-.
AE?B
Se4tion 9, R.A. No. ?@@8, +(en&in* Se4tion --/7A:7B:,NIR#.
A8/B
3bid.
A8-B
#o((issioner o2 Intern+) Re!en"e !s. Ben*"et #or%., G.R. Nos. -@D098 Y -@D099, J")5 9,
.//0.
A8.B
Unite& P+r+4+)e Minin* #o. !s. De)+ Ros+, G.R. Nos. E@89E-98, A%ri) 8, -??@, ..- S#RA -/9,
--0.
A8@B
E.O. No. .8@, Se4tion -.
A8DB
Se4tion 0.
A80B
Se4tion --/7B:.
A8EB
Jo"rn+) o2 t1e Sen+te, Session No. 8-, M+r41 -0, .//0, %. 9/@.
A88B
3d., Session No. E8, M+r41 8, .//0, %. 8.E.
A89B
3d., Session No. 8-, M+r41 -0, .//0, %. 9/@.
A8?B
Re!en"e Re*")+tions No. -D-.//0, D.--D-.7+:.
A9/B
#o((issioner o2 Intern+) Re!en"e !s. P1i)+(, G.R. No. -D-E09, M+r41 -9, .//0.
A9-B
Re!en"e Re*")+tions No. -D-.//0, Se4. D. --D-..
A9.B
A4t V, S4ene V.
A9@B
P1i)i%%ine R"r+) E)e4tri4 #oo%er+ti!es Asso4i+tion, In4. !s. DILG, G.R. No. -D@/8E, J"ne -/,
.//@, D/@ S#RA 009, 0E0.
A9DB
A,+n, Ben3+(in, :a; o$ Basic #a*ation in the Philippines 7;irst E&ition -??D:.
A90B
P1i)i%%ine J"&*es Asso4i+tion 4+se, supra., note .?.
A9EB
#o((issioner o2 Intern+) Re!en"e !s. #o"rt o2 A%%e+)s, G.R. No. --?8E-, A"*"st .?, -??E, .E-
S#RA .@E, .D?.
A98B
Xee !s. #o"rt o2 T+' A%%e+)s, No. L--9/9/, A%ri) .., -?E@, --8 P1i) E9., E99.
A99B
Se4tion 8, R.A. No. ?@@8.
A9?B
3bid.
A?/B
No. L-9-@--, J"ne @/, -?99, -E@ S#RA @8-, @9@.
A?-B
Se4tion -8, R.A. No. ?@@8, +(en&in* Se4tion -D9, NIR#.
A?.B
Se4tion -9, +(en&in* Se4tion -0-, NIR#.
A?@B
Se4tion -D, +(en&in* Se4tion --8, NIR#.
A?DB
Se4tion -0, +(en&in* Se4tion --?, NIR#.
A?0B
Se4tions - +n& ., +(en&in* Se4tions .8 +n& .9, NIR#.
A?EB
Se4tion ., +(en&in* Se4tion .9, NIR#.
A?8B
Se4tion -, +(en&in* Se4tion .87#:, NIR#.
A?9B
Re5es !s. A)(+nKor, G.R. Nos. D?9@?-DE, A%ri) .E, -??-, -?E S#RA @.., @.8.
A??B
To)entino !s. Se4ret+r5 o2 ;in+n4e, G.R. No. --0D00, O4to,er @/, -??0, .D? S#RA E.9, E0?.
A-//B
Ver+ !s. A!e)ino, G.R. No. L-0D@, A"*"st @-, -?DE, 88 P1i). @E0.
A-/-B
3bid.