Govt allows excise tax collection at free ports
THE Supreme Court nullified an Olongapo City court order suspending the collection of excise taxes on alcohol and tobacco imported through the Subic special economic zone, effectively allowing the government to collect taxes on such products imported through the free port.
In a decision penned by Associate Justice Conchita Carpio Morales, the high court nullified the May 4, 2005 order, issued by Judge Ramon Caguioa of the Olongapo City Regional Trial Court’s Branch 74, granting the petition of the locators and importers in the Subic Bay Freeport to stop the government from imposing excise taxes on the importations of sin products via free ports.
“The petition is partly granted. The writ of certiorari to nullify and set aside the order of May 4, 2005 as well as the writ of preliminary injunction issued by Judge Caguiao on May 11, 2005 is granted. The assailed order and writ of preliminary injunction are hereby declared null and void and accordingly set aside,” the SC ruled.
The high court granted the petition filed by the government through the Department of Finance, Bureau of Internal Revenue, Bureau of Customs and the Collector of Customs of Subic Port seeking to nullify the preliminary injunction Caguiao issued stopping the implementation of Republic Act 9334, or the law increasing excise taxes.
The court stopped the implementation of the law after alcohol and tobacco importers inside the Subic Freeport filed a suit seeking to declare certain provisions of RA 9344 unconstitutional.
Among those assailing the excise tax law were Indigo Distribution Corp, W Star Trading and Warehousing Corp., Freedom Brands Philippines Corp., Branded Warehouse, Inc., Altasia Inc., Tainan Trade (Taiwan) Inc., Subic Park N’ Shop, Trading Gateways International Philippines, Duty Free Superstore, Chimes Trading Inc., Premier Freeport Inc., Future Trade Subic Freeport Inc., Grand Comtrade International Corp. and First Platinum International.
In nullifying the trial court’s orders, the high court stressed that by enacting RA 9334, it expressed intention to withdraw the tax exemptions granted to the respondents on their importations of cigars, cigarettes, distilled spirits, fermented liquors, and wines.
The SC also cited that the National Internal Revenue Code requiring excises taxes on the importation of such products.
The SC also declared that tax exemptions may be modified or withdrawn since it is not considered a vested right but merely a statutory privilege.
It also held that the rights granted under the certificates of registration and tax exemption of the locators or investors are not absolute and unconditional as to constitute rights.
“The feared injurious effects of the imposition of duties, charges and taxes on imported cigars, cigarettes, distilled spirits, fermented liquors and wines on private respondents’ businesses cannot possibly outweigh the dire consequences that the non-collection of taxes, not to mention the unabated smuggling inside the SBF, would wreak on the government. Whatever damage would befall private respondents must perforce take a back seat to the pressing need to curb smuggling and raise revenues for governmental functions,” the court ruled. Rey E. Requejo - Manila Standard Today
In a decision penned by Associate Justice Conchita Carpio Morales, the high court nullified the May 4, 2005 order, issued by Judge Ramon Caguioa of the Olongapo City Regional Trial Court’s Branch 74, granting the petition of the locators and importers in the Subic Bay Freeport to stop the government from imposing excise taxes on the importations of sin products via free ports.
“The petition is partly granted. The writ of certiorari to nullify and set aside the order of May 4, 2005 as well as the writ of preliminary injunction issued by Judge Caguiao on May 11, 2005 is granted. The assailed order and writ of preliminary injunction are hereby declared null and void and accordingly set aside,” the SC ruled.
The high court granted the petition filed by the government through the Department of Finance, Bureau of Internal Revenue, Bureau of Customs and the Collector of Customs of Subic Port seeking to nullify the preliminary injunction Caguiao issued stopping the implementation of Republic Act 9334, or the law increasing excise taxes.
The court stopped the implementation of the law after alcohol and tobacco importers inside the Subic Freeport filed a suit seeking to declare certain provisions of RA 9344 unconstitutional.
Among those assailing the excise tax law were Indigo Distribution Corp, W Star Trading and Warehousing Corp., Freedom Brands Philippines Corp., Branded Warehouse, Inc., Altasia Inc., Tainan Trade (Taiwan) Inc., Subic Park N’ Shop, Trading Gateways International Philippines, Duty Free Superstore, Chimes Trading Inc., Premier Freeport Inc., Future Trade Subic Freeport Inc., Grand Comtrade International Corp. and First Platinum International.
In nullifying the trial court’s orders, the high court stressed that by enacting RA 9334, it expressed intention to withdraw the tax exemptions granted to the respondents on their importations of cigars, cigarettes, distilled spirits, fermented liquors, and wines.
The SC also cited that the National Internal Revenue Code requiring excises taxes on the importation of such products.
The SC also declared that tax exemptions may be modified or withdrawn since it is not considered a vested right but merely a statutory privilege.
It also held that the rights granted under the certificates of registration and tax exemption of the locators or investors are not absolute and unconditional as to constitute rights.
“The feared injurious effects of the imposition of duties, charges and taxes on imported cigars, cigarettes, distilled spirits, fermented liquors and wines on private respondents’ businesses cannot possibly outweigh the dire consequences that the non-collection of taxes, not to mention the unabated smuggling inside the SBF, would wreak on the government. Whatever damage would befall private respondents must perforce take a back seat to the pressing need to curb smuggling and raise revenues for governmental functions,” the court ruled. Rey E. Requejo - Manila Standard Today
posted by OlongapoCity Zambales at
3:47 PM
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