House panel OKs bill exempting tollways from VAT

The House committee on ways and means unanimously approved on Tuesday a bill exempting toll operations from the 12-percent value added tax, just four days after the government started collecting the tax. Batangas Rep. Hermilando Mandanas, House panel chair, said the committee immediately approved the measure in response to his constituent’s "sentiments" against the tax on tollway fees. "There is an issue of urgency here. There is a deafening cry from our constituency… We hear the sentiments of the commuters loud and clear," Mandanas said shortly before the bill was approved. He added that he will ask President Benigno Aquino III to certify the bill, which seeks to amend Republic Act 8424 or the National Internal Revenue Code of 1997, as urgent to fast track its passage. Last Saturday, the Bureau of Internal Revenue (BIR) started collecting the tax on toll three months after the Supreme Court allowed the VAT imposition, citing the absence of laws preventing such a move. The government is expected to earn P2.2 billion in revenues due to the imposition of VAT on tollway operations. House panel's move lauded Bayan Muna Rep. Teodoro Casiño, one of the authors of the measure, lauded the House committee for its swift action on the proposed legislation. "The committee has listened to the people’s clamor and has taken the first step in correcting the anomalous tax on toll," he said. He likewise said that he hopes the House will approve the bill before it goes on break on October 15. Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide (PISTON) secretary-general George San Mateo, for his part, said that the bill, if enacted into law, can definitely help drivers of public utility vehicles using the tollways. "Alam naman po nating public sector, particular ‘yung mga nasa jeepney, ay mahihirap na mamamayan na nagseserbisyo naman… Kaisa po kami na sumusuporta sa pagbasura sa toll," he said. Plenary deliberations The panel now needs to prepare a report on the measure's approval that will be submitted to the House committees on rules for it to be calendared for plenary deliberations. The measure will then be presented in the plenary, where lawmakers will discuss and vote on the approval of the measure on the floor. After the chamber approves the measure, it will submit the bill to the Senate for consideration. The Senate can either pass its own version of the bill or adopt the bill passed by the House. After this, the bicameral conference committee will be convened to reconcile the respective versions of the House and Senate. Once the bicameral committee approves the bill, it will be returned to the House and Senate for ratification. It will then be submitted to Malacañang for the signature of the President. — RSJ, GMA News