ABAKADA.docx

7/24/2019 ABAKADA.docx

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EN BANC

G.R. No. 168056 September 1, 2005

ABAKADA GURO PARTY LIST !ormer"# AAS$AS% O!!I&'RSSA(SON S. AL&ANTARA )*+ 'D IN&'NT S.ALBANO,Petitioners,vs.T-' -ONORABL' ''&UTI' S'&R'TARY 'DUARDO

'R(ITA/ -ONORABL' S'&R'TARY O! T-' D'PART('NT O!!INAN&' &'SAR PURISI(A/ )*+ -ONORABL'&O((ISSION'R O! INT'RNAL R''NU' GUILL'R(OPARAYNO, $R.,Respondent.

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G.R. No. 168207

AQU!N" Q. P#EN$E!, %R., !U&A P. E%ERC$"-E&$RA'A,%NGG"( E. E&$RA'A, PAN)!" #. !AC&"N, A!)RE'" &. !#,%A#B( A.&. #A'RGA!, AN' &ERG" R. "E*A , Petitioners,vs.

''&UTI' S'&R'TARY 'DUARDO R. 'R(ITA, &'SAR .PURISI(A, S'&R'TARY O! !INAN&', GUILL'R(O L.PARAYNO, $R., &O((ISSION'R O! T-' BUR'AU O!INT'RNAL R''NU',Respondent.

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G.R. No. 168+61

A&&"CA$"N ") P!PNA& &E!! 'EA!ER&, NC. represented its President, R"&AR" AN$"N"/ PE$R"N 'EA!ER&A&&"CA$"N represented its President, RU$ E. BARBB/A&&"CA$"N ") CA!$E 'EA!ER& ") $E P!PPNE&represented its President, #ERCE'$A& A. GARCA/ R"&AR"AN$"N" doin 3siness 3nder t4e n5e 5nd ste o 9ANBN"R$ &E!! &ER:CE &$A$"N9/ !"UR'E& #AR$NE; doin


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3siness 3nder t4e n5e 5nd ste o 9&E!! GA$E < N.'"#NG"9/ BE$;A'A $AN doin 3siness 3nder t4e n5e 5ndste o 9A':ANCE &E!! &$A$"N9/ RE(NA!'" P. #"N$"(Adoin 3siness 3nder t4e n5e 5nd ste o 9NE= !A#UAN &E!!

&ER:CE &$A$"N9/ E)REN &"$$" doin 3siness 3nder t4en5e 5nd ste o 9RE' )E!' &E!! &ER:CE &$A$"N9/'"NCA C"RP"RA$"N represented its President, 'E&$"#ACRU;/ RU$ E. #ARBB doin 3siness 3nder t4e n5e5nd ste o 9R>R PE$R"N &$A$"N9/ PE$ER #. UNG&"N doin3siness 3nder t4e n5e 5nd ste o 9C!A&&C &$AR GA&"!NE&ER:CE &$A$"N9/ #ARAN &E!A A. !EE doin 3siness 3ndert4e n5e 5nd ste o 9N$E GA&"!NE > &ER:CE &$A$"N9/%U!AN CE&AR P. P"&A'A& doin 3siness 3nder t4e n5e 5nd

ste o 9&$ARCARGA EN$ERPR&E&9/ A'"RAC"N #A*EB" doin3siness 3nder t4e n5e 5nd ste o 9C#A #"$"R&$&CEN$ER9/ &U&AN #. EN$RA$A doin 3siness 3nder t4e n5e5nd ste o 9!E"NA& GA&"!NE &$A$"N 5nd &ER:CECEN$ER9/ CAR#E!$A BA!'"NA'" doin 3siness 3nder t4en5e 5nd ste o 9)R&$ C"CE &ER:CE CEN$ER9/#ERCE'$A& A. GARCA doin 3siness 3nder t4e n5e 5nd steo 9!"RPE' &ER:CE CEN$ER9/ REA#AR A. RA#"& doin3siness 3nder t4e n5e 5nd ste o 9R%RA# P$$ GA&

&$A$"N9/ #A. &ABE! :"!AG" doin 3siness 3nder t4e n5e5nd ste o 9:"!AG"-P$$ &ER:CE CEN$ER9/ #"$"R&$&EAR$ C"RP"RA$"N represented its :i?e-President or"per5tions, %"&E!$" ). )!"R'E!;A/ #"$"R&$& AR:AR'C"RP"RA$"N represented its :i?e-President or "per5tions,%"&E!$" ). )!"R'E!;A/ #"$"R&$& ER$AGE C"RP"RA$"Nrepresented its :i?e-President or "per5tions, %"&E!$" ).)!"R'E!;A/ P!PPNE &$AN'AR' "! C"RP"RA$"Nrepresented its :i?e-President or "per5tions, %"&E!$" ).

)!"R'E!;A/ R"#E" #ANUE! doin 3siness 3nder t4e n5e5nd ste o 9R"##AN GA&"!NE &$A$"N9/ AN$"N( A!BER$CRU; doin 3siness 3nder t4e n5e 5nd ste o 9$RUE&ER:CE &$A$"N9, Petitioners,vs.&'SAR . PURISI(A, * 3)p)3t# ) Se3ret)r# o4 teDep)rtme*t o4 !*)*3e )*+ GUILL'R(O L. PARAYNO, $R.,


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* 3)p)3t# ) &ommo*er o4 I*ter*)"Ree*e,Respondent.

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G.R. No. 168+6@

)RANC& %"&EP G. E&CU'ER", :NCEN$ CR&"!"G",E##ANUE! %"E! %. :!!ANUE:A, R"'"!)" G. P!A;A, 'AR!ENEAN$"NN"-CU&$"'", "&CAR G. #A!AP$AN, BEN%A#N C.AGARA", %R. %UAN E'GAR'" #. ANGARA, %U&$N #ARC &B.CPEC", )!"RENC" G. N"E!, #U%: &. A$A#AN, RENA$" B.#AG$UB", %"&EP A. &AN$AG", $E")&$" '!. GUNG"NA ,RU( E!A& C. !"PE;, R"'"!)" Q. AGBA(AN 5nd $E"'"R" A.CA&*", Petitioners,vs.&'SAR . PURISI(A, * 3)p)3t# ) Se3ret)r# o4!*)*3e, GUILL'R(O L. PARAYNO, $R., * 3)p)3t# )&ommo*er o4 I*ter*)" Ree*e, )*+ 'DUARDO R.'R(ITA, * 3)p)3t# ) '7e3te Se3ret)r#,Respondent.

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G.R. No. 1687@0

BA$AAN G":ERN"R ENRQUE $. GARCA, %R. Petitioner,vs."N. E'UAR'" R. ER#$A, in 4is ?5p5?it 5s t4e Exe?3tive&e?ret5r/ "N. #ARGAR$" $E:E&, in 4is ?5p5?it 5s &e?ret5ro )in5n?e/ "N. %"&E #AR" BUNAG, in 4is ?5p5?it 5s t4e "CCoissioner o t4e B3re53 o ntern5 Reven3e/ 5nd "N.A!EAN'ER ARE:A!", in 4is ?5p5?it 5s t4e "C Coissioner

o t4e B3re53 o C3stos, Respondent.' E C & " N

AUSTRIA(ARTIN'9,J.:


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$4e expenses o overnent, 45vin or t4eir oe?t t4e interesto 5, s4o3d e orne everone, 5nd t4e ore 5n enost4e 5dv5nt5es o so?iet, t4e ore 4e o34t to 4od 4ise4onored in ?ontri3tin to t4ose expenses.

-Anne Roert %5?3es $3rot 1727-1781D

)ren?4 st5tes5n 5nd e?onoist

#o3ntin 3det dei?it, reven3e ener5tion, in5de35te is?55o?5tion or ed3?5tion, in?re5sed eo3ents or 4e5t4orFers, 5nd ider ?over5e or 3 v53e-5dded t5x eneits t4ese 5re t4e re5sons 4 Rep3i? A?t No. H@@7 R.A. No.H@@7D15s en5?ted. Re5sons, t4e isdo o 4i?4, t4e Co3rteven it4 its extensive ?onstit3tion5 poer o revie, ?5nnotproe. $4e petitioners in t4ese ?5ses, 4oever, 3estion not ont4e isdo o t4e 5, 3t 5so per?eived ?onstit3tion5inirities in its p5ss5e.

Ever 5 enos in its 5vor t4e pres3ption o ?onstit3tion5it.$4eir 5r3ents notit4st5ndin, petitioners 5ied to 3sti t4eir?5 or t4e inv5idit o t4e 5. en?e, R.A. No. H@@7 is not3n?onstit3tion5.

L'GISLATI' -ISTORY

R.A. No. H@@7 is 5 ?onsoid5tion o t4ree eis5tive is n5e,o3se Bi Nos. @III 5nd @70I, 5nd &en5te Bi No. 1HI0.

House Bill No. 355525s introd3?ed on irst re5din on %5n35r7, 200I. $4e o3se Coittee on =5s 5nd #e5ns 5pproved t4ei, in s3stit3tion o o3se Bi No. 1+68, 4i?4 Represent5tive

Rep.D Eri? '. &inson introd3?ed on A33st 8, 200+. $4ePresident ?ertiied t4e i on %5n35r 7, 200I or iedi5teen5?tent. "n %5n35r 27, 200I, t4e o3se o Represent5tives5pproved t4e i on se?ond 5nd t4ird re5din.

House Bill No. 3705@on t4e ot4er 45nd, s3stit3ted o3se BiNo. @10I introd3?ed Rep. &55?ni ). B5terin5, 5nd o3se Bi
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No. @@81 introd3?ed Rep. %5?into :. P5r5s. ts 9ot4er i9 iso3se Bi No. @III. $4e o3se Coittee on =5s 5nd #e5ns5pproved t4e i on )er35r 2, 200I. $4e President 5so ?ertiiedit 5s 3rent on )er35r 8, 200I. $4e o3se o Represent5tives

5pproved t4e i on se?ond 5nd t4ird re5din on )er35r 28,200I.

#e5n4ie, t4e &en5te Coittee on =5s 5nd #e5ns5pproved Senate Bill No. 1950+on #5r?4 7, 200I, 9ins3stit3tion o &en5te Bi Nos. 1@@7, 18@8 5nd 187@, t5Fin into?onsider5tion o3se Bi Nos. @III 5nd @70I.9 &en5tor R5p4 G.Re?to sponsored &en5te Bi No. 1@@7, 4ie &en5te Bi Nos.18@8 5nd 187@ ere ot4 sponsored &ens. )r5nFin #. 'rion,

%35n #. )5vier 5nd )r5n?is N. P5niin5n. $4e President ?ertiiedt4e i on #5r?4 11, 200I, 5nd 5s 5pproved t4e &en5te onse?ond 5nd t4ird re5din on Apri 1@, 200I.

"n t4e s5e d5te, Apri 1@, 200I, t4e &en5te 5reed to t4ere3est o t4e o3se o Represent5tives or 5 ?oittee?oneren?e on t4e dis5reein provisions o t4e proposed is.

Beore on, t4e Coneren?e Coittee on t4e 'is5reeinProvisions o o3se Bi No. @III, o3se Bi No. @70I, 5nd&en5te Bi No. 1HI0, 95ter 45vin et 5nd dis?3ssed in 3 ree5nd ?oneren?e,9 re?oended t4e 5pprov5 o its report, 4i?4t4e &en5te did on #5 10, 200I, 5nd it4 t4e o3se oRepresent5tives 5reein t4ereto t4e next d5, #5 11, 200I.

"n #5 2@, 200I, t4e enroed ?op o t4e ?onsoid5ted o3se5nd &en5te version 5s tr5nsitted to t4e President, 4o sinedt4e s5e into 5 on #5 2+, 200I. $43s, ?5e R.A. No. H@@7.

%3 1, 200I is t4e ee?tivit d5te o R.A. No. H@@7.I=4en s5idd5te ?5e, t4e Co3rt iss3ed 5 tepor5r restr5inin order,ee?tive iedi5te 5nd ?ontin3in 3nti 3rt4er orders,enoinin respondents ro enor?in 5nd ipeentin t4e 5.

"r5 5r3ents ere 4ed on %3 1+, 200I. &inii?5nt, d3rint4e 4e5rin, t4e Co3rt spe5Fin t4ro34 #r. %3sti?e Arteio :.
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P5n5ni5n, voi?ed t4e r5tion5e or its iss35n?e o t4e tepor5rrestr5inin order on %3 1, 200I, to itJ

%. PANGANBAN J . . . B3t eore o into t4e det5is o o3r

present5tion, et e 3st te o3 5 itte 5?Fro3nd. (o3 Fno4en t4e 5 tooF ee?t on %3 1, 200I, t4e Co3rt iss3ed 5 $R"5t 5o3t I o?o?F in t4e 5ternoon. B3t eore t45t, t4ere 5s 5ot o ?op5ints 5ired on teevision 5nd on r5dio. &oe peope in5 5s st5tion ere ?op5inin t45t t4e 5s pri?es ent 3p 10K. &oe peope ere ?op5inin t45t t4eir ee?tri? i i o3p 10K. "t4er ties peope ridin in doesti? 5ir ?5rrier ere?op5inin t45t t4e pri?es t45t t4e 45ve to p5 o3d 45ve too 3p 10K. =4ie 5 t45t 5s ein 5ired, per o3r

present5tion 5nd per o3r on 3nderst5ndin o t4e 5, t45ts nottr3e. ts not tr3e t45t t4e e-v5t 5 ne?ess5ri in?re5sed pri?es 10K 3nior isnt itL

A$$(. BANQUE' J No, (o3r onor.

%. PANGANBAN J t is notL

A$$(. BANQUE' J ts not, e?53se, (o3r onor, t4ere is 5nExe?3tive "rder t45t r5nted t4e Petroe3 ?op5nies soe

s3sid . . . interr3pted

%. PANGANBAN J $45ts ?orre?t . . .

A$$(. BANQUE' J . . . 5nd t4ereore t45t 5s e5nt to tepert4e ip5?t . . . interr3pted

%. PANGANBAN J . . . iti5tin e5s3res . . .

A$$(. BANQUE' J (es, (o3r onor.

%. PANGANBAN J As 5 5tter o 5?t 5 p5rt o t4e iti5tine5s3res o3d e t4e eiin5tion o t4e Ex?ise $5x 5nd t4eiport d3ties. $45t is 4, it is not ?orre?t to s5 t45t t4e :A$ 5sto petroe3 de5ers in?re5sed pri?es 10K.


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%. PANGANBAN J And t4ereore, t4ere is no 3stii?5tion orin?re5sin t4e ret5i pri?e 10K to ?over t4e E-:5t t5x. o3

?onsider t4e ex?ise t5x 5nd t4e iport d3ties, t4e Net $5x o3dpro5 e in t4e nei4or4ood o 7KL =e 5re not oin intoex5?t i3res 5 3st trin to deiver 5 point t45t dierentind3stries, dierent prod3?ts, dierent servi?es 5re 4it dierent.&o its not ?orre?t to s5 t45t 5 pri?es 3st o 3p 10K.

A$$(. BANQUE' J (o3re ri4t, (o3r onor.

%. PANGANBAN J No. )or inst5n?e, 'oesti? Airine ?op5nies,#r. Co3nse, 5re 5t present iposed 5 &5es $5x o @K. =4en t4isE-:5t 5 tooF ee?t t4e &5es $5x 5s 5so reoved 5s 5iti5tin e5s3re. &o, t4ereore, t4ere is no 3stii?5tion toin?re5se t4e 5res 10K 5t est 7K, ?orre?tL

A$$(. BANQUE' J 3ess so, (o3r onor, es.

%. PANGANBAN J $4ere 5re ot4er prod3?ts t45t t4e peope ere?op5inin on t45t irst d5, ere ein in?re5sed 5ritr5ri 10K. And t45ts one re5son 5on 5n ot4ers t4is Co3rt 45d to

iss3e $R" e?53se o t4e ?on3sion in t4e ipeent5tion. $45ts4 e 5dded 5s 5n iss3e in t4is ?5se, even i its t5nenti5t5Fen 3p t4e pe5dins o t4e p5rties, t4e ?on3sion in t4eipeent5tion o t4e E-v5t. "3r peope ere s3e?ted to t4eer? o t45t ?on3sion o 5n 5?ross t4e o5rd in?re5se o 10K,4i?4 o3 o3rse no 5dit 5nd t4inF even t4e Governenti 5dit is in?orre?t. n soe ?5ses, it s4o3d e @K on, insoe ?5ses it s4o3d e 6K dependin on t4ese iti5tine5s3res 5nd t4e o?5tion 5nd sit35tion o e5?4 prod3?t, o e5?4

servi?e, o e5?4 ?op5n, isnt itL


%. PANGANBAN J Ari4t. &o t45ts one re5son 4 e 45d toiss3e 5 $R" pendin t4e ?5rii?5tion o 5 t4ese 5nd e is4 t4eovernent i t5Fe tie to ?5ri 5 t4ese e5ns o 5 ore


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det5ied ipeentin r3es, in ?5se t4e 5 is 3p4ed t4isCo3rt. . . .6

$4e Co3rt 5so dire?ted t4e p5rties to ie t4eir respe?tive

#eor5nd5.G.R. No. 168056

Beore R.A. No. H@@7 tooF ee?t, petitionersABAKADAGURO P5rt !ist, et al., ied 5 petition or pro4iition on #5 27,200I. $4e 3estion t4e ?onstit3tion5it o &e?tions +, I 5nd 6 oR.A. No. H@@7, 5endin &e?tions 106, 107 5nd 108,respe?tive, o t4e N5tion5 ntern5 Reven3e Code NRCD.&e?tion + iposes 5 10K :A$ on s5e o oods 5nd properties,&e?tion I iposes 5 10K :A$ on iport5tion o oods, 5nd&e?tion 6 iposes 5 10K :A$ on s5e o servi?es 5nd 3se or e5seo properties. $4ese 3estioned provisions ?ont5in 53niorproviso53t4oriMin t4e President, 3pon re?oend5tiono t4e &e?ret5r o )in5n?e, to r5ise t4e :A$ r5te to 12K,ee?tive %5n35r 1, 2006, 5ter 5n o t4e ooin ?onditions45ve een s5tisied, to itJ

. . . $45t t4e President, 3pon t4e re?oend5tion o t4e

&e?ret5r o )in5n?e, s45, ee?tive %5n35r 1, 2006, r5ise t4er5te o v53e-5dded t5x to teve per?ent 12KD, 5ter 5n o t4eooin ?onditions 45s een s5tisiedJ

iD :53e-5dded t5x ?oe?tion 5s 5 per?ent5e o Gross 'oesti?Prod3?t G'PD o t4e previo3s e5r ex?eeds to 5nd o3r-it4per?ent 2 +IKD/ or

iiD N5tion5 overnent dei?it 5s 5 per?ent5e o G'P o t4e

previo3s e5r ex?eeds one 5nd one-45 per?ent 1 OKD.Petitioners 5r3e t45t t4e 5 is 3n?onstit3tion5, 5s it ?onstit3tes55ndonent Conress o its ex?3sive 53t4orit to ix t4e r5teo t5xes 3nder Arti?e :, &e?tion 282D o t4e 1H87 P4iippineConstit3tion.
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G.R. No. 16820;

"n %3ne H, 200I, &en. A3iino Q. Piente, %r., et al., ied 5petition or certiorariiFeise 5ss5iin t4e ?onstit3tion5it o

&e?tions +, I 5nd 6 o R.A. No. H@@7.Aside ro 3estionin t4e so-?5ed stand-by authority o t4ePresident to in?re5se t4e :A$ r5te to 12K, on t4e ro3nd t45t it5o3nts to 5n 3nd3e dee5tion o eis5tive poer, petitioners5so ?ontend t45t t4e in?re5se in t4e :A$ r5te to 12K ?ontinenton 5n o t4e to ?onditions ein s5tisied vio5tes t4e d3epro?ess ?53se eodied in Arti?e , &e?tion 1 o t4eConstit3tion, 5s it iposes 5n 3n5ir 5nd 5ddition5 t5x 3rden ont4e peope, in t45tJ 1D t4e 12K in?re5se is 5i3o3s e?53se itdoes not st5te i t4e r5te o3d e ret3rned to t4e oriin5 10K it4e ?onditions 5re no oner s5tisied/ 2D t4e r5te is 3n5ir 5nd3nre5son5e, 5s t4e peope 5re 3ns3re o t4e 5ppi?5e :A$ r5tero e5r to e5r/ 5nd @D t4e in?re5se in t4e :A$ r5te, 4i?4 iss3pposed to e 5n in?entive to t4e President to r5ise t4e :A$?oe?tion to 5t e5st 2 +Io t4e G'P o t4e previo3s e5r, s4o3don e 5sed on is?5 5de35?.

Petitioners 3rt4er ?5i t45t t4e in?3sion o 5 stand-byauthorityr5nted to t4e President t4e Bi?5er5 Coneren?eCoittee is 5 vio5tion o t4e 9no-5endent r3e9 3pon 5stre5din o 5 i 5id don in Arti?e :, &e?tion 262D o t4eConstit3tion.

G.R. No. 168


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2D Section , 5endin &e?tion 110 BD o t4e NRC, iposin 570K iit on t4e 5o3nt o inp3t t5x to e ?redited 55inst t4eo3tp3t t5x/ 5nd

@D Section !", 5endin &e?tion 11+ ?D o t4e NRC, 53t4oriMint4e Governent or 5n o its poiti?5 s3divisions,instr3ent5ities or 5en?ies, in?3din G"CCs, to ded3?t 5 IKin5 it44odin t5x on ross p5ents o oods 5nd servi?es,4i?4 5re s3e?t to 10K :A$ 3nder &e?tions 106 s5e o oods5nd propertiesD 5nd 108 s5e o servi?es 5nd 3se or e5se opropertiesD o t4e NRC.

Petitioners ?ontend t45t t4ese provisions 5re 3n?onstit3tion5 orein 5ritr5r, oppressive, ex?essive, 5nd ?onis?5tor.

Petitioners 5r3ent is preised on t4e ?onstit3tion5 ri4t onon-depriv5tion o ie, iert or propert it4o3t d3e pro?ess o5 3nder Arti?e , &e?tion 1 o t4e Constit3tion. A??ordin topetitioners, t4e ?ontested se?tions ipose iit5tions on t4e5o3nt o inp3t t5x t45t 5 e ?5ied. Petitioners 5so 5r3et45t t4e inp3t t5x p5rt5Fes t4e n5t3re o 5 propert t45t 5 note ?onis?5ted, 5ppropri5ted, or iited it4o3t d3e pro?ess o5. Petitioners 3rt4er ?ontend t45t iFe 5n ot4er propert orpropert ri4t, t4e inp3t t5x ?redit 5 e tr5nserred ordisposed o, 5nd t45t iitin t4e s5e, t4e overnent etsto t5x 5 proit or v53e-5dded even i t4ere is no proit or v53e-5dded.

Petitioners 5so eieve t45t t4ese provisions vio5te t4e?onstit3tion5 35r5ntee o e35 prote?tion o t4e 5 3nderArti?e , &e?tion 1 o t4e Constit3tion, 5s t4e iit5tion on t4e?redit5e inp3t t5x iJ 1D t4e entit 45s 5 4i4 r5tio o inp3t t5x/

or 2D invests in ?5pit5 e3ipent/ or @D 45s sever5tr5ns5?tions it4 t4e overnent, is not 5sed on re5 5nds3st5nti5 dieren?es to eet 5 v5id ?5ssii?5tion.

!5st, petitioners ?ontend t45t t4e 70K iit is 5nt4in 3tproressive, vio5tive o Arti?e :, &e?tion 281D o t4e


11/65

Constit3tion, 5nd t45t it is t4e s5er 3sinesses it4 4i4erinp3t t5x to o3tp3t t5x r5tio t45t i s3er t4e ?onse3en?est4ereo or it ipes o3t 45tever e5er 5rins t4e petitioners5Fe.

G.R. No. 168


12/65

R'SPOND'NTS> &O(('NT

$4e "i?e o t4e &oi?itor Gener5 "&GD ied 5 Coent ine45 o respondents. Preiin5ri, respondents ?ontend t45t

R.A. No. H@@7 enos t4e pres3ption o ?onstit3tion5it 5ndpetitioners 5ied to ?5st do3t on its v5idit.

Rein on t4e ?5se o #olentino vs. Secretary o$ %inance, 2@I&CRA

6@0 1HH+D, respondents 5r3e t45t t4e pro?ed3r5 iss3es r5ised petitioners, i.e., e5it o t4e i?5er5 pro?eedins,ex?3sive oriin5tion o reven3e e5s3res 5nd t4e poer o t4e&en5te ?on?oit5nt t4ereto, 45ve 5re5d een setted. =it4re5rd to t4e iss3e o 3nd3e dee5tion o eis5tive poer to t4ePresident, respondents ?ontend t45t t4e 5 is ?opete 5nde5ves no dis?retion to t4e President 3t to in?re5se t4e r5te to12K on?e 5n o t4e to ?onditions provided t4erein 5rise.

Respondents 5so re3te petitioners 5r3ent t45t t4e in?re5seto 12K, 5s e 5s t4e 70K iit5tion on t4e ?redit5e inp3t t5x,t4e 60-ont4 5ortiM5tion on t4e p3r?45se or iport5tion o?5pit5 oods ex?eedinP1,000,000.00, 5nd t4e IK in5

it44odin t5x overnent 5en?ies, is 5ritr5r, oppressive,5nd ?onis?5tor, 5nd t45t it vio5tes t4e ?onstit3tion5 prin?ipeon proressive t5x5tion, 5on ot4ers.

)in5, respondents 5niest t45t R.A. No. H@@7 is t4e 5n?4or ot4e overnents is?5 reor 5end5. A reor in t4e v53e-5dded sste o t5x5tion is t4e ?ore reven3e e5s3re t45t itit t4e 55n?e to5rds 5 s3st5in5e 5?roe?onoi?environent ne?ess5r or e?onoi? rot4.

ISSU'S

$4e Co3rt deined t4e iss3es, 5s oosJ

PRO&'DURAL ISSU'


13/65

=4et4er R.A. No. H@@7 vio5tes t4e ooin provisions o t4eConstit3tionJ

5. Arti?e :, &e?tion 2+, 5nd

. Arti?e :, &e?tion 262D

SUBSTANTI' ISSU'S

1. =4et4er &e?tions +, I 5nd 6 o R.A. No. H@@7, 5endin&e?tions 106, 107 5nd 108 o t4e NRC, vio5te t4e ooinprovisions o t4e Constit3tionJ

5. Arti?e :, &e?tion 281D, 5nd


2. =4et4er &e?tion 8 o R.A. No. H@@7, 5endin &e?tions110AD2D 5nd 110BD o t4e NRC/ 5nd &e?tion 12 o R.A. No.H@@7, 5endin &e?tion 11+CD o t4e NRC, vio5te t4e ooinprovisions o t4e Constit3tionJ


. Arti?e , &e?tion 1

RULING O! T-' &OURT

As 5 pre3de, t4e Co3rt dees it 5pt to rest5te t4e ener5prin?ipes 5nd ?on?epts o v53e-5dded t5x :A$D, 5s t4e?on3sion 5nd inevit5, iti5tion, reeds ro 5 55?io3snotion o its n5t3re.

$4e :A$ is 5 t5x on spendin or ?ons3ption. t is evied on t4es5e, 5rter, ex?45ne or e5se o oods or properties 5ndservi?es.8Bein 5n indire?t t5x on expendit3re, t4e seer ooods or servi?es 5 p5ss on t4e 5o3nt o t5x p5id to t4e3er,Hit4 t4e seer 5?tin ere 5s 5 t5x ?oe?tor.10$4e3rden o :A$ is intended to 5 on t4e iedi5te 3ers 5nd3ti5te, t4e end-?ons3ers.


14/65

n ?ontr5st, 5 dire?t t5x is 5 t5x or 4i?4 5 t5xp5er is dire?ti5e on t4e tr5ns5?tion or 3siness it en5es in, it4o3ttr5nserrin t4e 3rden to soeone ese.11Ex5pes 5reindivid35 5nd ?orpor5te in?oe t5xes, tr5nser t5xes, 5nd

residen?e t5xes.12

n t4e P4iippines, t4e v53e-5dded sste o s5es t5x5tion 45son een in existen?e, 5eit in 5 dierent ode. Prior to 1H78,t4e sste 5s 5 sine-st5e t5x ?op3ted 3nder t4e 9?ostded3?tion et4od9 5nd 5s p55e on t4e oriin5 seers.$4e sine-st5e sste 5s s3se3ent odiied, 5nd 5ixt3re o t4e 9?ost ded3?tion et4od9 5nd 9t5x ?redit et4od95s 3sed to deterine t4e v53e-5dded t5x p55e.1@Under t4e

9t5x ?redit et4od,9 5n entit ?5n ?redit 55inst or s3tr5?t rot4e :A$ ?45red on its s5es or o3tp3ts t4e :A$ p5id on itsp3r?45ses, inp3ts 5nd iports.1+

t 5s on in 1H87, 4en President Cor5Mon C. A3ino iss3edExe?3tive "rder No. 27@, t45t t4e :A$ sste 5s r5tion5iMed iposin 5 3ti-st5e t5x r5te o 0K or 10K on 5 s5es 3sint4e 9t5x ?redit et4od.91I

E.". No. 27@ 5s ooed R.A. No. 7716 or t4e Exp5nded :A$!5,16R.A. No. 82+1 or t4e proved :A$ !5,17R.A. No. 8+2+or t4e $5x Reor A?t o 1HH7,185nd in5, t4e presentee53ered R.A. No. H@@7, 5so reerred to respondents 5st4e :A$ Reor A?t.

$4e Co3rt i no dis?3ss t4e iss3es in oi?5 se3en?e.

PRO&'DURAL ISSU'

.=4et4er R.A. No. H@@7 vio5tes t4e ooin provisions o t4eConstit3tionJ

5. Arti?e :, &e?tion 2+, 5nd
http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt11http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt12http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt13http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt14http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt15http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt16http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt17http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt18http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt11http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt12http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt13http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt14http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt15http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt16http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt17http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt18


15/65


A. $4e Bi?5er5 Coneren?e Coittee

Petitioners Es?3dero,et al., 5nd Piente,et al., 5ee t45t t4eBi?5er5 Coneren?e Coittee ex?eeded its 53t4orit J

1D nsertin t4e stand-by authorityin 5vor o t4e President in&e?tions +, I, 5nd 6 o R.A. No. H@@7/

2D 'eetin entire t4e no pass-onprovisions o3nd in ot4 t4eo3se 5nd &en5te is/

@D nsertin t4e provision iposin 5 70K iit on t4e 5o3nt o

inp3t t5x to e ?redited 55inst t4e o3tp3t t5x/ 5nd

+D n?3din t4e 5endents introd3?ed on &en5te Bi No.1HI0 re5rdin ot4er Finds o t5xes in 5ddition to t4e v53e-5dded t5x.

Petitioners no esee?4 t4e Co3rt to deine t4e poers o t4eBi?5er5 Coneren?e Coittee.

t s4o3d e orne in ind t45t t4e poer o intern5 re35tion5nd dis?ipine 5re intrinsi? in 5n eis5tive od or, 5s3nerrin e3?id5ted %3sti?e &tor, ?@4 te poer ++ *ote7t, t o"+ be tter"# mpr)3t3)b"e to tr)*)3t teb*e o4 te *)to*, eter )t )"", or )t "e)t t+e3e*3#, +e"ber)to*, )*+ or+er.91H$43s, Arti?e :, &e?tion16 @D o t4e Constit3tion provides t45t 9e5?4 o3se 5deterine t4e r3es o its pro?eedins.9 P3rs35nt to t4is in4erent?onstit3tion5 poer to pro35te 5nd ipeent its on r3eso pro?ed3re, t4e respe?tive r3es o e5?4 4o3se o Conressprovided or t4e ?re5tion o 5 Bi?5er5 Coneren?e Coittee.

$43s, R3e :, &e?tions 88 5nd 8H o t4e R3es o o3se oRepresent5tives provides 5s oosJ


16/65

&e?. 88. &on$erence &o''ittee. < n t4e event t45t t4e o3sedoes not 5ree it4 t4e &en5te on t4e 5endent to 5n i oroint reso3tion, t4e dieren?es 5 e setted t4e ?oneren?e?oittees o ot4 ?45ers.

n resovin t4e dieren?es it4 t4e &en5te, t4e o3se p5nes45, 5s 3?4 5s possie, 5d4ere to 5nd s3pport t4e o3se Bi. t4e dieren?es it4 t4e &en5te 5re so s3st5nti5 t45t t4e5teri5 ip5ir t4e o3se Bi, t4e p5ne s45 report s3?4 5?tto t4e o3se or t4e 5tters 5ppropri5te 5?tion.

&e?. 8H. &on$erence &o''ittee Reports. < . . . E5?4 report s45?ont5in 5 det5ied, s3i?ient expi?it st5teent o t4e ?45nesin or 5endents to t4e s3e?t e5s3re.

. . .

$4e C45ir5n o t4e o3se p5ne 5 e interpe5ted on t4eConeren?e Coittee Report prior to t4e votin t4ereon. $4eo3se s45 vote on t4e Coneren?e Coittee Report in t4es5e 5nner 5nd pro?ed3re 5s it votes on 5 i on t4ird 5nd in5re5din.

R3e , &e?tion @I o t4e R3es o t4e &en5te st5tesJ

&e?. @I. n t4e event t45t t4e &en5te does not 5ree it4 t4eo3se o Represent5tives on t4e provision o 5n i or ointreso3tion, t4e dieren?es s45 e setted 5 ?oneren?e?oittee o ot4 o3ses 4i?4 s45 eet it4in ten 10D d5s5ter t4eir ?oposition. $4e President s45 desin5te t4eeers o t4e &en5te P5ne in t4e ?oneren?e ?oittee it4t4e 5pprov5 o t4e &en5te.

E5?4 Coneren?e Coittee Report s45 ?ont5in 5 det5ied 5nds3i?ient expi?it st5teent o t4e ?45nes in, or 5endentsto t4e s3e?t e5s3re, 5nd s45 e sined 5 5orit o t4eeers o e5?4 o3se p5ne, votin sep5r5te.


17/65

A ?op5r5tive present5tion o t4e ?oni?tin o3se 5nd &en5teprovisions 5nd 5 re?on?ied version t4ereo it4 t4e exp5n5torst5teent o t4e ?oneren?e ?oittee s45 e 5tt5?4ed to t4ereport.

. . .

$4e ?re5tion o s3?4 ?oneren?e ?oittee 5s 5pp5rent inresponse to 5 proe, not 5ddressed 5n ?onstit3tion5provision, 4ere t4e to 4o3ses o Conress ind t4eseves indis5reeent over ?45nes or 5endents introd3?ed t4eot4er 4o3se in 5 eis5tive i. Given t45t one o t4e ost 5si?poers o t4e eis5tive r5n?4 is to or35te 5nd ipeent itson r3es o pro?eedins 5nd to dis?ipine its eers, 5 t4eCo3rt t4en deve into t4e det5is o 4o Conress ?opies it4its intern5 r3es or 4o it ?ond3?ts its 3siness o p5ssineis5tionL Note t45t in t4e present petitions, t4e iss3e is not4et4er provisions o t4e r3es o ot4 4o3ses ?re5tin t4ei?5er5 ?oneren?e ?oittee 5re 3n?onstit3tion5, bteter te b3)mer)" 3o*4ere*3e 3ommttee ) tr3t"#3omp"e+ t te r"e o4 bot oe, tereb# rem)**Ct* te r+3to* 3o*4erre+ po* t b# &o*Cre.

n t4e re?ent ?5se o %ari(as vs. #he )*ecutive Secretary,20t4eCo3rt )n Banc, *)*mo"#reiter5ted 5nd ep45siMed its5d4eren?e to t4e 9enroed i do?trine,9 t43s, de?inin t4ereinpetitioners pe5 or t4e Co3rt to o e4ind t4e enroed ?op ot4e i. Ass5ied in s5id ?5se 5s Conresss ?re5tion o to setso i?5er5 ?oneren?e ?oittees, t4e 5?F o re?ords o s5id?oittees pro?eedins, t4e 5eed vio5tion o s5id ?oitteeso t4e r3es o ot4 4o3ses, 5nd t4e dis5ppe5r5n?e or deetion oone o t4e provisions in t4e ?oproise i s3itted t4ei?5er5 ?oneren?e ?oittee. t 5s 5r3ed t45t s3?4irre35rities in t4e p5ss5e o t4e 5 n3iied R.A. No. H006, ort4e )5ir Ee?tion A?t.

&triFin don s3?4 5r3ent, t4e Co3rt 4ed t43sJ


18/65

Under t4e 9enroed i do?trine,9 t4e sinin o 5 i t4e&pe5Fer o t4e o3se 5nd t4e &en5te President 5nd t4e?ertii?5tion o t4e &e?ret5ries o ot4 o3ses o Conress t45t it5s p5ssed 5re ?on?3sive o its d3e en5?tent. A revie o

?5ses reve5s t4e Co3rts ?onsistent 5d4eren?e to t4e r3e. Te&ort 4*+ *o re)o* to +e)te 4rom te )"t)r# r"e *t 3)e ere te rreC")rte )""eCe+ b# te petto*ermot"# *o"e+ te *ter*)" r"e o4 &o*Cre, e.g.,3re)to* o4 te 2*+ or =r+ B3)mer)" &o*4ere*3e &ommtteeb# te -oe. T &ort *ot te proper 4orm 4or tee*4or3eme*t o4 tee *ter*)" r"e o4 &o*Cre, eter-oe or Se*)te. P)r")me*t)r# r"e )re mere"#pro3e+r)" )*+ t ter ober)*3e te 3ort )e *o

3o*3er*. E)teer +obt tere m)# be ) to te 4orm)")"+t# o4 Rep. A3t No. F006 mt be reo"e+ * t4)or.$4e Co3rt reiter5tes its r3in inArroyo vs. De+enecia, vi.J

B3t t4e 3)e, bot ere )*+ )bro)+, * )r#*C 4orm o4e7preo*, )"" +e*# to te 3ort te poer to *re *to)""eC)to* t)t, * e*)3t*C ) "), ) -oe o4 &o*Cre4)"e+ to 3omp"# t t o* r"e, * te )be*3e o4

o*C t)t tere ) ) o")to* o4 ) 3o*ttto*)"proo* or te rCt o4 pr)te *++)".n Os'e(a v.Pendatun, it 5s 4edJ 9At 5n r5te, ?o3rts 45ve de?5red t45tt4e r3es 5dopted deier5tive odies 5re s3e?t torevo?5tion, odii?5tion or 5iver 5t t4e pe5s3re o t4e od5doptin t4e. A*+ t ) bee* )+ t)t ?P)r")me*t)r#r"e )re mere"# pro3e+r)", )*+ t ter ober)*3e,te 3ort )e *o 3o*3er*. Te# m)# be )e+ or+reC)r+e+ b# te "eC")te bo+#.? &o*ee*t"#, ?mere

4)"re to 3o*4orm to p)r")me*t)r# )Ce "" *ot*)"+)te te )3to* t)He* b# ) +e"ber)te bo+#% e*te rete *mber o4 member )e )Cree+ to )p)rt3")r me)re.921Ep45sis s3ppiedD

$4e oreoin de?5r5tion is ex5?t in point it4 t4e present?5ses, 4ere petitioners 5ee irre35rities ?oitted t4e


19/65

?oneren?e ?oittee in introd3?in ?45nes or deetinprovisions in t4e o3se 5nd &en5te is. AFin tot4e%ari(as ?5se,22t4e present petitions 5so r5ise 5n iss3ere5rdin t4e 5?tions t5Fen t4e ?oneren?e ?oittee on

5tters re5rdin Conress ?opi5n?e it4 its on intern5r3es. As st5ted e5rier, one o t4e ost 5si? 5nd in4erent poero t4e eis5t3re is t4e poer to or35te r3es or itspro?eedins 5nd t4e dis?ipine o its eers. Conress is t4eest 3de o 4o it s4o3d ?ond3?t its on 3sinessexpeditio3s 5nd in t4e ost order 5nner. t is 5so t4e soe

?on?ern o Conress to insti dis?ipine 5on t4e eers o its?oneren?e ?oittee i it eieves t45t s5id eers vio5ted

5n o its r3es o pro?eedins. Even t4e exp5nded 3risdi?tion ot4is Co3rt ?5nnot 5pp to 3estions re5rdin on t4e intern5oper5tion o Conress, t43s, t4e Co3rt is ont to den 5 revie ot4e intern5 pro?eedins o 5 ?o-e35 r5n?4 o overnent.

#oreover, 5s 5r 5?F 5s 1HH+ or ore t45n ten e5rs 5o, in t4e?5se o #olentino vs. Secretary o$ %inance,2@t4e Co3rt 5re5d5de t4e prono3n?eent t45t 9@4 ) 3)*Ce +ere+ * tepr)3t3e @o4 te B3)mer)" &o*4ere*3e &ommttee t mtbe oCt * &o*Cre *3e t eto* *ot 3oere+ b#)*# 3o*ttto*)" proo* bt o*"# )* *ter*)" r"e o4e)3 oe.92+$o d5te, Conress 45s not seen it it to 5Fes3?4 ?45nes 5dverted to t4e Co3rt. t sees, t4ereore, t45tConress inds t4e pr5?ti?es o t4e i?5er5 ?oneren?e?oittee to e ver 3se3 or p3rposes o propt 5nd ei?ienteis5tive 5?tion.

Nevert4eess, 3st to p3t inds 5t e5se t45t no 5t5ntirre35rities t5inted t4e pro?eedins o t4e i?5er5 ?oneren?e?oittees, t4e Co3rt dees it ne?ess5r to de on t4e iss3e.$4e Co3rt oserves t45t t4ere 5s 5 ne?essit or 5 ?oneren?e?oittee e?53se 5 ?op5rison o t4e provisions o o3se BiNos. @III 5nd @70I on one 45nd, 5nd &en5te Bi No. 1HI0 ont4e ot4er, reve5s t45t t4ere ere indeed dis5reeents. Aspointed o3t in t4e petitions, s5id dis5reeents ere 5s oosJ


20/65

-oe B"" No. =555

With regard to "Stand-By Authority" in a!or o resident

Provides or 12K :A$ on ever s5e o oods or properties 5en5endin &e?. 107 o NRCD/ 5nd 12K :A$ on s5e o servi?es 5nd 3s

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

No sii5r provision

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

Provides t45t t4e inp3t t5x ?redit or ?5pit5 oods on 4i?4 5 :A$ 4depre?i5e ie o s3?4 ?5pit5 oods/ t4e inp3t t5x ?redit or oods 5ntot5 5o3nt o s3?4 oods 5nd servi?es/ 5nd or persons en5ed in ex?eed 11K o t4e tot5 5o3nt o oods p3r?45sed.

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

No sii5rprovision

No sii5r provision

Provided or5endents tosever5 NRCprovisionsre5rdin


21/65

?orpor5te in?oe,per?ent5e,r5n?4ise 5nd

ex?ise t5xes

$4e dis5reeents eteen t4e provisions in t4e o3se is 5ndt4e &en5te i ere it4 re5rd to 1D 45t r5te o :A$ is to eiposed/ 2D 4et4er on t4e :A$ iposed on ee?tri?itener5tion, tr5nsission 5nd distri3tion ?op5nies s4o3d note p5ssed on to ?ons3ers, 5s proposed in t4e &en5te i, orot4 t4e :A$ iposed on ee?tri?it ener5tion, tr5nsission 5nddistri3tion ?op5nies 5nd t4e :A$ iposed on s5e o petroe3prod3?ts s4o3d not e p5ssed on to ?ons3ers, 5s proposed int4e o3se i/ @D in 45t 5nner inp3t t5x ?redits s4o3d eiited/ +D 5nd 4et4er t4e NRC provisions on ?orpor5te in?oet5xes, per?ent5e, r5n?4ise 5nd ex?ise t5xes s4o3d e5ended.

$4ere ein dieren?es 5ndor dis5reeents on t4e oreoinprovisions o t4e o3se 5nd &en5te is, t4e Bi?5er5Coneren?e Coittee 5s 5nd5ted t4e r3es o ot4 4o3ses

o Conress to 5?t on t4e s5e settin s5id dieren?es 5ndordis5reeents. $4e Bi?5er5 Coneren?e Coittee 5?ted ont4e dis5reein provisions 5Fin t4e ooin ?45nesJ

1. =it4 re5rd to t4e dis5reeent on t4e r5te o :A$ to eiposed, it o3d 5ppe5r ro t4e Coneren?e Coittee Reportt45t t4e Bi?5er5 Coneren?e Coittee tried to ride t4e 5pin t4e dieren?e eteen t4e 10K :A$ r5te proposed t4e&en5te, 5nd t4e v5rio3s r5tes it4 12K 5s t4e 4i4est :A$ r5te

proposed t4e o3se, striFin 5 ?oproise 4ere t4epresent 10K :A$ r5te o3d e ret5ined 3nti ?ert5in ?onditions5rise,i.e., t4e v53e-5dded t5x ?oe?tion 5s 5 per?ent5e o rossdoesti? prod3?t G'PD o t4e previo3s e5r ex?eeds 2 +IK, orN5tion5 Governent dei?it 5s 5 per?ent5e o G'P o t4eprevio3s e5r ex?eeds 1OK, 4en t4e President, 3pon


22/65

re?oend5tion o t4e &e?ret5r o )in5n?e s45 r5ise t4e r5teo :A$ to 12K ee?tive %5n35r 1, 2006.

2. =it4 re5rd to t4e dis5reeent on 4et4er on t4e :A$

iposed on ee?tri?it ener5tion, tr5nsission 5nd distri3tion?op5nies s4o3d not e p5ssed on to ?ons3ers or 4et4erot4 t4e :A$ iposed on ee?tri?it ener5tion, tr5nsission 5nddistri3tion ?op5nies 5nd t4e :A$ iposed on s5e o petroe3prod3?ts 5 e p5ssed on to ?ons3ers, t4e Bi?5er5Coneren?e Coittee ?4ose to sette s3?4 dis5reeent 5toet4er deetin ro its Report 5n no pass-onprovision.

@. =it4 re5rd to t4e dis5reeent on 4et4er inp3t t5x ?reditss4o3d e iited or not, t4e Bi?5er5 Coneren?e Coitteede?ided to 5dopt t4e position o t4e o3se p3ttin 5 iit5tionon t4e 5o3nt o inp3t t5x t45t 5 e ?redited 55inst t4eo3tp3t t5x, 5t4o34 it ?r5ted its on 5n35e 5s to t4e 5o3nto t4e iit5tion on inp3t t5x ?redits 5nd t4e 5nner o?op3tin t4e s5e providin t43sJ

AD Credit5e np3t $5x. < . . .

. . .

Provided,$4e inp3t t5x on oods p3r?45sed or iported in 5?5end5r ont4 or 3se in tr5de or 3siness or 4i?4 ded3?tionor depre?i5tion is 5oed 3nder t4is Code, s45 e spre5deven over t4e ont4 o 5?3isition 5nd t4e it-nine IHDs3??eedin ont4s i t4e 5re5te 5?3isition ?ost or s3?4oods, ex?3din t4e :A$ ?oponent t4ereo, ex?eeds one iionPesos P1,000,000.00DJ PR":'E', 4oever, t45t i t4eesti5ted 3se3 ie o t4e ?5pit5 ood is ess t45n ive ID e5rs,

5s 3sed or depre?i5tion p3rposes, t4en t4e inp3t :A$ s45 espre5d over s3?4 s4orter periodJ . . .

BD Ex?ess "3tp3t or np3t $5x. < 5t t4e end o 5n t5x5e35rter t4e o3tp3t t5x ex?eeds t4e inp3t t5x, t4e ex?ess s45 ep5id t4e :A$-reistered person. t4e inp3t t5x ex?eeds t4eo3tp3t t5x, t4e ex?ess s45 e ?5rried over to t4e s3??eedin


23/65

35rter or 35rtersJ PR":'E' t45t t4e inp3t t5x in?3sive oinp3t :A$ ?5rried over ro t4e previo3s 35rter t45t 5 e?redited in ever 35rter s45 not ex?eed sevent per?ent 70KDo t4e o3tp3t :A$J PR":'E', "=E:ER, $A$ 5n inp3t t5x

5ttri3t5e to Mero-r5ted s5es 5 :A$-reistered person 55t 4is option e re3nded or ?redited 55inst ot4er intern5reven3e t5xes, . . .

+. =it4 re5rd to t4e 5endents to ot4er provisions o t4eNRC on ?orpor5te in?oe t5x, r5n?4ise, per?ent5e 5nd ex?iset5xes, t4e ?oneren?e ?oittee de?ided to in?3de s3?45endents 5nd 5si?5 5dopted t4e provisions o3nd in&en5te Bi No. 1HI0, it4 soe ?45nes 5s to t4e r5te o t4e t5x

to e iposed.Under t4e provisions o ot4 t4e R3es o t4e o3se oRepresent5tives 5nd &en5te R3es, t4e Bi?5er5 Coneren?eCoittee is 5nd5ted to sette t4e dieren?es eteen t4edis5reein provisions in t4e o3se i 5nd t4e &en5te i. $4eter 9sette9 is snono3s to 9re?on?ie9 5nd 945roniMe.92I$ore?on?ie or 45roniMe dis5reein provisions, t4e Bi?5er5Coneren?e Coittee 5 t4en 5D 5dopt t4e spe?ii? provisionso eit4er t4e o3se i or &en5te i, D de?ide t45t neit4erprovisions in t4e o3se i or t4e provisions in t4e &en5te io3d

e ?5rried into t4e in5 or o t4e i, 5ndor ?D tr to 5rrive 5t5 ?oproise eteen t4e dis5reein provisions.

n t4e present ?5se, t4e ?45nes introd3?ed t4e Bi?5er5Coneren?e Coittee on dis5reein provisions ere e5nton to re?on?ie 5nd 45roniMe t4e dis5reein provisions or it

did not ine?t 5n ide5 or intent t45t is 4o orein to t4es3e?t er5?ed t4e oriin5 provisions.

$4e so-?5ed stand-by authorityin 5vor o t4e President,4ere t4e r5te o 10K :A$ 5nted t4e &en5te is ret5ined3nti s3?4 tie t45t ?ert5in ?onditions 5rise 4en t4e 12K :A$


24/65


25/65

inp3t :A$ t5x ?redits . . .9 5nd 9 introd3?in iit5tions on t4e?5iin o t5x ?redit, e 5re ?5ppin 5 5or e5F5e t45t 45sp5?ed o3r ?oe?tion eorts 5t 5n 5pp5rent dis5dv5nt5e.928

As to t4e 5endents to NRC provisions on t5xes ot4er t45n t4ev53e-5dded t5x proposed in &en5te Bi No. 1HI0, sin?e s5idprovisions ere 5on t4ose reerred to it, t4e ?oneren?e?oittee 45d to 5?t on t4e s5e 5nd it 5si?5 5dopted t4eversion o t4e &en5te.

$43s, 5 t4e ?45nes or odii?5tions 5de t4e Bi?5er5Coneren?e Coittee ere er5ne to s3e?ts o t4eprovisions reerred

to it or re?on?ii5tion. &3?4 ein t4e ?5se, t4e Co3rt does notsee 5n r5ve 53se o dis?retion 5o3ntin to 5?F or ex?ess o3risdi?tion ?oitted t4e Bi?5er5 Coneren?e Coittee.n t4e e5rier ?5ses o Philippine udes Association vs.Prado2H5nd #olentino vs. Secretary o$ %inance,@0t4e Co3rtre?oniMed t4e on-st5ndin eis5tive pr5?ti?e o ivin s5id?oneren?e ?oittee 5pe 5tit3de or ?oproisindieren?es eteen t4e &en5te 5nd t4e o3se. $43s, int4e #olentino ?5se, it 5s 4ed t45tJ

. . . it is it4in t4e poer o 5 ?oneren?e ?oittee to in?3de inits report 5n entire ne provision t45t is not o3nd eit4er in t4eo3se i or in t4e &en5te i. t4e ?oittee ?5n propose 5n5endent ?onsistin o one or to provisions, t4ere is nore5son 4 it ?5nnot propose sever5 provisions, ?oe?tive?onsidered 5s 5n 95endent in t4e n5t3re o 5 s3stit3te,9 soon 5s s3?4 5endent is er5ne to t4e s3e?t o t4e iseore t4e ?oittee. Ater 5, its report 5s not in5 3t

needed t4e 5pprov5 o ot4 4o3ses o Conress to e?oe v5id5s 5n 5?t o t4e eis5tive dep5rtent. Te 3)rCe t)t * t3)e te &o*4ere*3e &ommttee )3te+ ) ) tr+ "eC")te3)mber t tot )*# b).@1Ep45sis s3ppiedD
http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt28http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt29http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt30http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt31http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt28http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt29http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt30http://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt31


26/65

B. R.A. /o. 0112 Does /ot +iolate Article +3, Section "45"6 o$ the&onstitution on the 7/o-A'end'ent Rule7

Arti?e :, &e?. 26 2D o t4e Constit3tion, st5tesJ

No i p5ssed eit4er o3se s45 e?oe 5 5 3ness it 45sp5ssed t4ree re5dins on sep5r5te d5s, 5nd printed ?opiest4ereo in its in5 or 45ve een distri3ted to its #eerst4ree d5s eore its p5ss5e, ex?ept 4en t4e President ?ertiiesto t4e ne?essit o its iedi5te en5?tent to eet 5 p3i??55it or eeren?. Upon t4e 5st re5din o 5 i, no5endent t4ereto s45 e 5oed, 5nd t4e vote t4ereon s45e t5Fen iedi5te t4ere5ter, 5nd t4e e5s 5nd n5s enteredin t4e %o3rn5.

Petitioners 5r3ent t45t t4e pr5?ti?e 4ere 5 i?5er5?oneren?e ?oittee is 5oed to 5dd or deete provisions int4e o3se i 5nd t4e &en5te i 5ter t4ese 45d p5ssed t4reere5dins is in ee?t 5 ?ir?3vention o t4e 9no 5endent r3e9&e?. 26 2D, Art. : o t4e 1H87 Constit3tionD, 5is to ?onvin?et4e Co3rt to devi5te ro its r3in in t4e #olentino ?5se t45tJ

Nor is t4ere 5n re5son or re3irin t45t t4e Coittees Report

in t4ese ?5ses 3st 45ve 3nderone t4ree re5dins in e5?4 o t4eto 4o3ses. t45t e t4e ?5se, t4ere o3d e no end toneoti5tion sin?e e5?4 4o3se 5 seeF odii?5tion o t4e?oproise i. . . .

Art. I. 26 2% mt, tere4ore, be 3o*tre+ ) re4err*Co*"# to b"" *tro+3e+ 4or te 4rt tme * eter oe o4&o*Cre, *ot to te 3o*4ere*3e 3ommtteereport.@2Ep45sis s3ppiedD

$4e Co3rt reiter5tes 4ere t45t te ?*o)me*+me*t r"e?re4er o*"# to te pro3e+re to be 4o""oe+ b# e)3 oeo4 &o*Cre t reC)r+ to b"" *t)te+ * e)3 o4 )+repe3te oe, be4ore )+ b"" tr)*mtte+ to teoter oe 4or t 3o*3rre*3e or )me*+me*t. :eri, to?onstr3e s5id provision in 5 5 5s to pros?rie 5n 3rt4er


27/65

?45nes to 5 i 5ter one 4o3se 45s voted on it o3d e5d to5s3rdit 5s t4is o3d e5n t45t t4e ot4er 4o3se o Conresso3d e deprived o its ?onstit3tion5 poer to 5end orintrod3?e ?45nes to s5id i. $43s, Art. :, &e?. 26 2D o t4e

Constit3tion ?5nnot e t5Fen to e5n t45t t4e introd3?tion t4eBi?5er5 Coneren?e Coittee o 5endents 5ndodii?5tions to dis5reein provisions in is t45t 45ve een5?ted 3pon ot4 4o3ses o Conress is pro4iited.

&. R.A. /o. 0112 Does /ot +iolate Article +3, Section "8 o$ the&onstitution on )*clusive Oriination o$ Revenue Bills

Coin to t4e iss3e o t4e v5idit o t4e 5endents 5dere5rdin t4e NRC provisions on ?orpor5te in?oe t5xes 5ndper?ent5e, ex?ise t5xes. Petitioners reer to t4e ooinprovisions, to itJ

&e?tion27

R5tes o n?oe $5x on 'oesti? Corpor5tion

28AD1D $5x on Resident )orein Corpor5tion

28BD1D nter-?orpor5te 'ividends

@+BD1D nter-?orpor5te 'ividends

116 $5x on Persons Exept ro :A$

117 Per?ent5e $5x on doesti? ?5rriers 5nd Feepers oG5r5e

11H $5x on r5n?4ises


28/65

121 $5x on 5nFs 5nd Non-B5nF )in5n?i5 nteredi5ries

1+8 Ex?ise $5x on 5n35?t3red ois 5nd ot4er 3es

1I1 Ex?ise $5x on iner5 prod3?ts

2@6 Reistr5tion re3ireents

2@7 ss35n?e o re?eipts or s5es or ?oer?i5 invoi?es

288 'isposition o n?reent5 Reven3e

Petitioners ?5i t45t t4e 5endents to t4ese provisions o t4eNRC did not 5t 5 oriin5te ro t4e o3se. $4e 5ver t45to3se Bi No. @III proposed 5endents on re5rdin&e?tions 106, 107, 108, 110 5nd 11+ o t4e NRC, 4ie o3seBi No. @70I proposed 5endents on to &e?tions 106,

107,108, 10H, 110 5nd 111 o t4e NRC/ t43s, t4e ot4er se?tionso t4e NRC 4i?4 t4e &en5te 5ended 3t 4i?4 5endentsere not o3nd in t4e o3se is 5re not intended to e 5ended t4e o3se o Represent5tives. en?e, t4e 5r3e t45t sin?et4e proposed 5endents did not oriin5te ro t4e o3se, s3?45endents 5re 5 vio5tion o Arti?e :, &e?tion 2+ o t4eConstit3tion.

$4e 5r3ent does not 4od 5ter.

Arti?e :, &e?tion 2+ o t4e Constit3tion re5dsJ

&e?. 2+. A 5ppropri5tion, reven3e or t5ri is, is 53t4oriMinin?re5se o t4e p3i? det, is o o?5 5ppi?5tion, 5nd priv5teis s45 oriin5te ex?3sive in t4e o3se o Represent5tives3t t4e &en5te 5 propose or ?on?3r it4 5endents.


29/65

n t4e present ?5ses, petitioners 5dit t45t it 5s indeed o3seBi Nos. @III 5nd @70I t45t initi5ted t4e ove or 5endinprovisions o t4e NRC de5in 5in it4 t4e v53e-5dded t5x.Upon tr5nsitt5 o s5id o3se is to t4e &en5te, t4e &en5te

?5e o3t it4 &en5te Bi No. 1HI0 proposin 5endents noton to NRC provisions on t4e v53e-5dded t5x 3t 5so5endents to NRC provisions on ot4er Finds o t5xes. s t4eintrod3?tion t4e &en5te o provisions not de5in dire?t it4t4e v53e- 5dded t5x, 4i?4 is t4e on Find o t5x ein5ended in t4e o3se is, sti it4in t4e p3rvie o t4e?onstit3tion5 provision 53t4oriMin t4e &en5te to propose or?on?3r it4 5endents to 5 reven3e i t45t oriin5ted rot4e o3seL

$4e oreoin 3estion 45d een s35re 5nsered int4e #olentino ?5se, 4erein t4e Co3rt 4ed, t43sJ

. . . $o ein it4, it is not t4e 5 < 3t t4e reven3e i < 4i?4is re3ired t4e Constit3tion to 9oriin5te ex?3sive9 in t4eo3se o Represent5tives. t is iport5nt to ep45siMe t4is,e?53se 5 i oriin5tin in t4e o3se 5 3ndero s3?4extensive ?45nes in t4e &en5te t45t t4e res3t 5 e 5reritin o t4e 4oe. . . . At t4is point, 45t is iport5nt tonote is t45t, 5s 5 res3t o t4e &en5te 5?tion, 5 distin?t i 5e prod3?ed. To *t t)t ) ree*e t)tte J )*+ *ot o*"#te b"" 3 *t)te+ te "eC")te pro3e 3"m*)t*C* te e*)3tme*t o4 te ") J mt bt)*t)""# be te)me ) te -oe b"" o"+ be to +e*# te Se*)te>poer *ot o*"# to ?'on'ur ,ith a%end%ents? bt )"o to?#ro#ose a%end%ents.?t o3d e to vio5te t4e ?oe35ito eis5tive poer o t4e to 4o3ses o Conress 5nd in 5?t

5Fe t4e o3se s3perior to t4e &en5te.

Ge*, te*, te poer o4 te Se*)te to propoe)me*+me*t, te Se*)te 3)* propoe t o* ero* ee*


30/65

t repe3t to b"" 3 )re rere+ b# te &o*ttto*to orC*)te * te -oe.

. . .

ndeed, 45t t4e Constit3tion sip e5ns is t45t t4e initi5tiveor iin reven3e, t5ri or t5x is, is 53t4oriMin 5n in?re5se ot4e p3i? det, priv5te is 5nd is o o?5 5ppi?5tion 3st?oe ro t4e o3se o Represent5tives on t4e t4eor t45t,ee?ted 5s t4e 5re ro t4e distri?ts, te member o4 te-oe 3)* be e7pe3te+ to be more e*te to te "o3)"*ee+ )*+ prob"em. O* te oter )*+, te e*)tor, o)re e"e3te+ )t ")rCe, )re e7pe3te+ to )ppro)3 te )meprob"em 4rom te *)to*)" perpe3te. Bot e )retereb# m)+e to be)r o* te e*)3tme*t o4 3").@@Ep45sis s3ppiedD

&in?e t4ere is no 3estion t45t t4e reven3e i ex?3siveoriin5ted in t4e o3se o Represent5tives, t4e &en5te 5s 5?tinit4in its

?onstit3tion5 poer to introd3?e 5endents to t4e o3se i4en it in?3ded provisions in &en5te Bi No. 1HI0 5endin

?orpor5te in?oe t5xes, per?ent5e, ex?ise 5nd r5n?4ise t5xes.:eri, Arti?e :, &e?tion 2+ o t4e Constit3tion does not ?ont5in5n pro4iition or iit5tion on t4e extent o t4e 5endentst45t 5 e introd3?ed t4e &en5te to t4e o3se reven3e i.

)3rt4erore, t4e 5endents introd3?ed t4e &en5te to t4eNRC provisions t45t 45d not een to3?4ed in t4e o3se is 5resti in 3rt4er5n?e o t4e intent o t4e o3se in initi5tin t4es3e?t reven3e is. $4e Exp5n5tor Note o o3se Bi No.

1+68, t4e ver irst o3se i introd3?ed on t4e oor, 4i?4 5s5ter s3stit3ted o3se Bi No. @III, st5tedJ

"ne o t4e ?45enes 5?ed t4e present 5dinistr5tion is t4e3rent 5nd d53ntin t5sF o sovin t4e ?o3ntrs serio3s in5n?i5proes. $o do t4is, overnent expendit3res 3st e stri?tonitored 5nd ?ontroed 5nd reven3es 3st e sinii?5nt


31/65

in?re5sed. $4is 5 e e5sier s5id t45n done, 3t o3r is?553t4orities 5re sti optiisti? t4e overnent i e oper5tin on5 55n?ed 3det t4e e5r 200H. n 5?t, sever5 e5s3rest45t i res3t to sinii?5nt expendit3re s5vins 45ve een

identiied t4e 5dinistr5tion. It pporte+ t )3re+b"e p)3H)Ce o4 ree*e me)re t)t *3"+eme)re to mproe t)7 )+m*tr)to* )*+ 3o*tro" te"e)H)Ce * ree*e 4rom *3ome t)7e )*+ te )"e)++e+ t)7 AT%. Ep45sis s3ppiedD

Rep. Eri? '. &inson, in 4is sponsors4ip spee?4 or o3se Bi No.@III, de?5red t45tJ

n t4e 3det ess5e o o3r President in t4e e5r 200I, s4ereiter5ted t45t e 5 5?Fnoeded t45t on top o o3r 5end53st e t4e restor5tion o t4e 4e5t4 o o3r is?5 sste.

n order to ?onsider5 oer t4e ?onsoid5ted p3i? se?tordei?it 5nd event35 5?4ieve 5 55n?ed 3det t4e e5r200H, e *ee+ to ee *+o o4 opport*te 3mCt eem poC*)*t * te beC***C, bt * te "o*C r*proe e44e3te )*+ be*e43)" to te oer)"" t)t o4 ore3o*om#. O*e 3 opport*t# ) ree o4 e7t*C t)7r)te, e)")t*C te re"e)*3e Ce* or pree*t3o*+to*.@+Ep45sis s3ppiedD

Not5 t4ereore, t4e 5in p3rpose o t4e is e5n5tin rot4e o3se o Represent5tives is to rin in siMe5e reven3es ort4e overnent

to s3ppeent o3r ?o3ntrs serio3s in5n?i5 proes, 5ndiprove t5x 5dinistr5tion 5nd ?ontro o t4e e5F5es in

reven3es ro in?oe t5xes 5nd v53e-5dded t5xes. As t4ese4o3se is ere tr5nsitted to t4e &en5te, t4e 5tter,5ppro5?4in t4e e5s3res ro t4e point o n5tion5 perspe?tive,?5n introd3?e 5endents it4in t4e p3rposes o t4ose is. t?5n provide or 5s t45t o3d soten t4e ip5?t o t4e :A$e5s3re on t4e ?ons3er,i.e., distri3tin t4e 3rden 5?ross


32/65

5 se?tors inste5d o p3ttin it entire on t4e s4o3ders o t4e?ons3ers. $4e sponsors4ip spee?4 o &en. R5p4 Re?to on 4t4e provisions on in?oe t5x on ?orpor5tion ere in?3ded isort4 3otinJ

A in 5, t4e propos5 o t4e &en5te Coittee on =5s 5nd#e5ns i r5ise P6+.@ iion in 5ddition5 reven3es 5nn35 even4ie iti5tin pri?es o poer, servi?es 5nd petroe3prod3?ts.

oever, not 5 o t4is i e r3n o3t o :A$. n 5?t,on P+8.7 iion 5o3nt is ro t4e :A$ on teve oods 5ndservi?es. $4e rest o t4e t5 < P10.I iion- i e pi?Fed ?orpor5tions.

=45t e t4ereore pres?rie is 5 3rden s45rin eteen?orpor5te P4iippines 5nd t4e ?ons3er. =4 s4o3d t4e 5ttere5r 5 t4e p5inL =4 s4o3d t4e is?5 s5v5tion e on on t4e3rden o t4e ?ons3erL

$4e ?orpor5te ords e3it is in or o t4e in?re5se in t4e?orpor5te in?oe t5x ro @2 to @I per?ent, 3t 3p to 2008 on.$4is i r5ise P10.I iion 5 e5r. Ater t45t, t4e r5te i side

5?F, not to its od r5te o @2 per?ent, 3t to not?4es oer, to@0 per?ent.

Ce5r, e 5re tein t4ose it4 t4e ?5p5?it to p5,?orpor5tions, to e5r it4 t4is eeren? provision t45t i e inee?t or 1,200 d5s, 4ie e p3t o3r is?5 4o3se in order. $4isis?5 edi?ine i 45ve 5n expir d5te.

)or t4eir 5ssist5n?e, 5 re5rd o t5x red3?tion 55its t4e. =e

intend to Feep t4e ent4 o t4eir s5?rii?e rie. =e o3d iFe to5ss3re t4e t45t not e?53se t4ere is 5 i4t 5t t4e end o t4et3nne, t4is overnent i Feep on 5Fin t4e t3nne on.

$4e responsiiit i not rest soe on t4e e5r s4o3ders ot4e s5 5n. Bi 3siness i e t4ere to s45re t4e 3rden.@I


33/65

As t4e Co3rt 45s s5id, t4e &en5te ?5n propose 5endents 5ndin 5?t, t4e 5endents 5de on provisions in t4e t5x on in?oeo ?orpor5tions 5re er5ne to t4e p3rpose o t4e 4o3se is4i?4 is to r5ise reven3es or t4e overnent.

!iFeise, t4e Co3rt inds t4e se?tions reerrin to ot4erper?ent5e 5nd ex?ise t5xes er5ne to t4e reors to t4e :A$sste, 5s t4ese se?tions o3d ?3s4ion t4e ee?ts o :A$ on?ons3ers. Considerin t45t ?ert5in oods 5nd servi?es 4i?4ere s3e?t to per?ent5e t5x 5nd ex?ise t5x o3d no oner e:A$-exept, t4e ?ons3er o3d e 3rdened ore 5s t4eo3d e p5in t4e :A$ in 5ddition to t4ese t5xes. $43s, t4ere is5 need to 5end t4ese se?tions to soten t4e ip5?t o :A$.

A5in, in 4is sponsors4ip spee?4, &en. Re?to s5idJoever, or poer p5nts t45t r3n on oi, e i red3?e to Merot4e present ex?ise t5x on 3nFer 3e, to essen t4e ee?t o 5:A$ on t4is prod3?t.

)or ee?tri? 3tiities iFe #er5?o, e i ipe o3t t4e r5n?4ise t5xin ex?45ne or 5 :A$.

And in t4e ?5se o petroe3, 4ie e i ev t4e :A$ on oi

prod3?ts, so 5s not to destro t4e :A$ ?45in, e i 4oeverrin don t4e ex?ise t5x on so?i5 sensitive prod3?ts s3?4 5sdiese, 3nFer, 3e 5nd Ferosene.

. . .

=45t do 5 t4ese exer?ises point toL $4ese 5re not ?ontortions oivin to t4e et 45nd 45t 5s t5Fen ro t4e ri4t. R5t4er,t4ese spr5n ro o3r ?on?ern o sotenin t4e ip5?t o :A$, so

t45t t4e peope ?5n ?3s4ion t4e o o 4i4er pri?es t4e i45ve to p5 5s 5 res3t o :A$.@6

$4e ot4er se?tions 5ended t4e &en5te pert5ined to 5tterso t5x 5dinistr5tion 4i?4 5re ne?ess5r or t4e ipeent5tiono t4e ?45nes in t4e :A$ sste.


34/65

$o reiter5te, t4e se?tions introd3?ed t4e &en5te 5re er5neto t4e s3e?t 5tter 5nd p3rposes o t4e 4o3se is, 4i?4 is tos3ppeent o3r ?o3ntrs is?5 dei?it, 5on ot4ers. $43s, t4e&en5te 5?ted it4in its poer to propose t4ose 5endents.

SUBSTANTI' ISSU'S

.

=4et4er &e?tions +, I 5nd 6 o R.A. No. H@@7, 5endin &e?tions106, 107 5nd 108 o t4e NRC, vio5te t4e ooin provisions ot4e Constit3tionJ



A. /o Undue Deleation o$ 9eislative Po:er

PetitionersABAKADA GURO P5rt !ist,et al., Piente, %r.,et al.,5nd Es?3dero,et al.?ontend in ?oon t45t &e?tions +, I 5nd 6o R.A. No. H@@7, 5endin &e?tions 106, 107 5nd 108,respe?tive, o t4e NRC ivin t4e President t4e stand-by

authorityto r5ise t4e :A$ r5te ro 10K to 12K 4en 5 ?ert5in?ondition is et, ?onstit3tes 3nd3e dee5tion o t4e eis5tivepoer to t5x.

$4e 5ss5ied provisions re5d 5s oosJ

&EC. +. &e?. 106 o t4e s5e Code, 5s 5ended, is 4ere3rt4er 5ended to re5d 5s oosJ

&EC. 106. :53e-Added $5x on &5e o Goods or Properties.

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