SC affirms tax reform law constitutional

THE Supreme Court has upheld the constitutionality of Republic Act 10963 or the “Tax Reform for Acceleration and Inclusion Act” (Train Act).

Voting 13-1 with 1 abstention, the high court dismissed the consolidated petitions of groups led by ACT Teachers Rep. Antonio Tinio and Laban Konsyumer which argued, that the Train Act was unconstitutionally passed by the House of Representatives.

They argued that the bill was passed despite a purported lack of quorum, and that its provisions which imposed excise taxes on diesel, coal, liquefied petroleum gas and kerosene, were prohibited regressive taxes.

The petitioners also argued that these same excise taxes were confiscatory and discriminatory against the poor and violated the Filipino people’s right to due process and equal protection of laws.

In its decision penned by Justice Jaafar Dimaampao, the court held that the supposed absence of a quorum was belied by the official journal of the House of Representatives, both on the day that the bicameral conference committee report was ratified and the subsequent session held on Jan. 15, 2018.

As to the veracity of the livestream video and photographs presented by the petitioners as evidence, the court ruled that the records posted in the journal must prevail as to the events on the congressional floor on that fateful day given that no less than the Constitution itself grants the Congressional Journal its imprimatur.

The court also reiterated that the Constitution, in its present form, does not prohibit the imposition of regressive taxes, but merely directs Congress to evolve a progressive system of taxation.

Lastly, the court ruled that petitioners’ contention that the provisions of the Train Act are “anti-poor,” was not sufficiently proven and remained largely hypothetical.

The Supreme Court’s PIO said it will upload the decision to the high court’s website once it receives an official copy from the Office of the Clerk of Court en banc.