Question: The proposed amendments to the VAT has spawned a lot of controversy.

However, the issue of

validity of the imposition of VAT is not one of the first impression. Tolentino vs. Secretary of Finance,
ruled that the VAT law was valid for various reasons. Which among the following statements is not among
the reasons mentioned in the decision for upholding the validity of the VAT law?
The imposition of VAT does not violate the uniformity principle because it is applied similarly on all goods
and services sold to the public which are not exempt, at the constant rate of 0% to 12%
There was no improper delegation of the legislative authority to tax when Congress imposed the
VAT
It is equitable because it is imposed only on the sale of goods and services by persons engaged in
business with an annual gross sales exceeding P550,000
Small sari-sari stores, as well as sales of farm and marine products, are exempt from the VAT so that the
costs of basic food and other necessities are expected to be relatively lower and within the reach of the
general public.